SEC files record number of lawsuits against crypto companies in 2023
Compared to last year, the figure is up by 53%
25.01.2024 - 09:38
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What’s new? In 2023, the US Securities and Exchange Commission (SEC) used enforcement actions against cryptocurrency companies 46 times — a 53% increase from last year. The figure was an all-time record, Cornerstone Research analysts reported. In total, the regulator has brought 173 proceedings related to firms in the digital asset sector since 2013.
What else is known? The most frequently cited lawsuits involve an unregistered offering of securities and/or fraud in its offering. Such allegations are contained in 28 and 26 filings, respectively.
Eight cases cite failure to disclose in the offering of securities, and another eight cite failure to register as a broker and/or exchange. Four proceedings relate to market manipulation.
Many lawsuits contain more than one allegation. For example, last June, the SEC filed lawsuits against Binance and Coinbase for failing to register as exchanges and offering unregistered securities.
“Relative to 2022, the number of litigations slightly increased, while the number of administrative proceedings more than tripled,” the report said.
Last September, the SEC said it was preparing more investigations into crypto exchanges and DeFi protocols. Later, Republican Congressman Tom Emmer suggested limiting the SEC’s budget for suing crypto companies.
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