Cryptocurrency industry has accumulated R$ billion in fines since ,

Cryptocurrency industry has accumulated R$42 billion in fines since 2013, study finds

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September 15, 2024

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Cryptocurrency industry has accumulated R$42 billion in fines since 2013, study finds
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Since 2013, the cryptocurrency industry has received a total of US$7.4 billion in fines, according to a study published on Tuesday (10) by digital asset analysis firm Social Capital Markets. In reais, at the current exchange rate, this is equivalent to R$43 billion.

As the survey points out, there was a significant increase in the value of penalties imposed on companies in the sector, reflecting a strategic change in the application of fines.

In 2024, the amount of fines already surpasses all previous ones, with a total of US$4.7 billion. The amount is largely driven by the US$4.47 billion settlement reached by Terraform Labs. Despite the record amount, the number of penalties issued fell to 11 this year, compared to 30 in 2023, when the US Securities and Exchange Commission (SEC) issued a total of US$150 million in fines.

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The Social Capital Markets report highlights that this increase in fine amounts reflects a shift towards higher-impact cases. Overall, there are fewer penalties, but the amounts are significantly higher.

Fines for the cryptocurrency sector

“The overall increase in fine amounts indicates a strategic shift toward fewer high-impact cases,” Social Capital Markets said in its report. “This evolution underscores the need for crypto companies to prioritize regulatory compliance as the financial risks associated with violations have increased.”

Since 2013, the SEC has issued a total of 148 fines against the cryptocurrency industry, according to the report. Of those, 63 were against crypto companies and individuals. The estimated $7.4 billion includes penalties for both companies and individuals involved in the digital asset market.

Among the largest fines ever handed out, Terraform Labs’ stands out as the largest, followed by the $1.2 billion penalty imposed on Telegram. In 2020, Telegram agreed to pay a small fine and return more than $1 billion to investors after being accused of conducting an “unregistered digital token sale” through its TON blockchain project.