A new report shows that U.S. regulators have obligatory fines and penalties totaling $2.5 billion on crypto corporations and people to this point. The U.S. Securities and Exchange Commission (SEC) has charged for the foremost fines, followed by the Commodity Futures Trading Commission (CFTC). Meanwhile, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) is the latest bureau to return once crypto corporations.
$2.5 Billion in Fines and Penalties
Blockchain analytics firm Elliptic free a report Monday outlining “crypto social control actions by U.S. regulators.” The report explains: “Contrary to the widely-held belief that the cryptoasset trade is unregulated, United States regulators are more and more imposing significant money penalties on crypto businesses – for fraud, breaches of AML laws, giving unregistered securities and sanctions violations.”
Elliptic analyzed social control actions by U.S. regulators since the birth of Bitcoin in 2009 and found that “$2.5 billion in penalties are charged against corporations and people dealing in crypto,” the report details.
The agency that charged the foremost crypto-related penalties is that the U.S. Securities and Exchange Commission (SEC). Crypto corporations and people are asked to pay $1.69 billion by the SEC to this point, $1.38 billion of that are from unregistered security offerings.
The Commodity Futures Trading Commission (CFTC) came second with social control actions totaling $624 million. The third is the Financial Crimes Enforcement Network (FinCEN), a unit of the U.S. Department of the Treasury, with $183 million.
The fourth is the U.S. Treasury’s Office of Foreign Assets Control (OFAC), the most recent bureau to require action against crypto businesses. The OFAC has levied $606K on crypto entities in total. Among firms punished by the OFAC were Bitgo and Bitpay; each allegedly allowed their users to bypass U.S. sanctions.
The largest enforcement action up to now was in 2020 against Telegram group Inc. and its completely closely-held subsidiary Ton establishment INC., the report notes. The SEC alleged that Telegram’s tokens, referred to as “grams,” were unregistered securities giving. The defendants united to come up with quite $1.2 billion to investors ANd pay an $18.5 million civil penalty.
The report concludes:
“Our analysis of cryptoasset-related enforcement actions within the United States demonstrates that crypto is far from being the ‘wild west’ of finance. Regulators have with success used existing laws to halt and punish illicit activity that has exploited cryptoassets.