For all the complaints levied against the crypto-strict U.S. Securities and Exchange Commission (SEC), the agency successfully obtained orders for $8.2 billion in financial remedies for 2024.

This is despite a 26% decrease in total enforcement actions.

The successful prosecution of Terraform Labs helped the agency achieve this milestone. Once a jury verdict found Terraform Labs and founder Do Kwon liable for fraud, defendants agreed to a final judgment ordering them to pay more than $4.5 billion in penalties — the highest amount ever obtained by the SEC following a trial.

It accounted for more than half of the total monetary judgments, according to the details from the press release.

SEC’s 583 enforcement actions

The SEC’s enforcement efforts in 2024 showed significant shifts across multiple categories, with 583 total enforcement actions. This includes 431 stand-alone actions representing a 14% decrease, 93 follow-on administrative proceedings showing a 43% decrease, and 59 delinquent filing actions marking a 51% decline.

Despite the reduced number of cases, the financial impact reached these levels, combining $6.1 billion in disgorgement and prejudgment interest with $2.1 billion in civil penalties.

In the cryptocurrency sector, the SEC pursued several major cases, including charges against Silvergate Capital for misleading BSA/AML compliance disclosures and action against Barnbridge DAO for unregistered securities offerings.

The agency also tackled the HyperFund pyramid scheme involving $1.7 billion and the NovaTech fraud case affecting 200,000 investors. Notable first-time enforcement actions targeted relationship investment scams involving NanoBit and CoinW6 platforms.

The SEC’s Division of Enforcement won all five federal district court cases, including its crypto-related trial against Terraform Labs. This success extended to investor protection measures, with 124 individuals barred from serving as officers and directors of public companies.

SEC Chair Gary Gensler emphasized the Division’s role as a “steadfast cop on the beat,” while Acting Director Sanjay Wadhwa noted increased market participant cooperation and self-reporting. 

The report somewhat justifies Gensler’s role as the top crypto enforcer. The outgoing SEC chair, set to resign on Jan. 20, faced harsh criticism from crypto enthusiasts and retail traders throughout his tenure for his regulatory approach.

And yet, the SEC distributed $345 million to harmed investors and processed a record 45,130 tips, complaints, and referrals, including over 24,000 whistleblower tips, resulting in $255 million in whistleblower awards.

The agency’s success in returning funds to investors has been substantial, with more than $2.7 billion distributed since fiscal year 2021.

The body of Kevin Mirshahi, a 25-year-old cryptocurrency influencer who had been missing since June, was found dead.

Mirshahi’s body was discovered in Montreal’s Île-de-la-Visitation Park, as confirmed by the Sûreté du Québec, according to the Montreal Gazette. 

A passerby came across his decomposing body, prompting an investigation that identified him through an autopsy.

The case, which marks Montreal’s 32nd homicide of 2024, has highlighted a concerning pattern of violence within the crypto community, raising questions about the safety of high-profile figures in the sector.

Timeline of Mirshahi’s disappearance and death

Mirshahi’s disappearance occurred on June 21. Early that morning, he and three others were allegedly abducted from a condo building in Old Montreal.

Montreal police were alerted after receiving a 911 call about a disturbance at a residence near de la Commune and St-Hubert Streets, according to The Gazette.

While the three other abductees were quickly located, Mirshahi remained missing, prompting police to escalate the investigation to the SQ.

During the initial investigation, police identified Joanie Lepage, a 32-year-old woman from Les Cèdres, Quebec, as a suspect, per The Gazette.

In August, she was arrested and charged with first-degree murder and involvement in Mirshahi’s abduction. Authorities allege that Lepage played a role in concealing Mirshahi’s death, though investigations are ongoing to determine if other suspects may have been involved.

Mirshahi’s background in crypto 

Mirshahi was a prominent figure in Montreal’s cryptocurrency scene, primarily due to his management of a private investment firm called “Crypto Paradise Island,” per The Gazette.

His activities in the crypto space attracted public and regulatory scrutiny, particularly from Quebec’s investment authority, the Autorité des Marchés Financiers.

The AMF placed restrictions on Mirshahi in 2021, barring him and two associates from acting as investment advisers or conducting securities transactions. Two weeks after his disappearance, this ban was reinforced in July 2024, limiting his online activities and requiring him to cease promoting related content on social media.

This case isn’t the first crypto-related crime that happened in Canada this month. On Nov. 6, Toronto police investigated the kidnapping of WonderFi CEO Dean Skurka, who was abducted in downtown Toronto and released after a $1 million ransom was paid electronically.

Venture Capitalist Nic Carter criticizes Minneapolis Federal Reserve President Neel Kashkari for his remarks on how crypto is “almost never” used outside of illicit activity, even though the data tells a different story.

In an X post on Oct. 22, Nic Carter wrote “being this wrong should be illegal” in response to Neel Kashkari’s remarks about cryptocurrency being mostly used for illegal activities. He viewed Kashkari’s comments as unfortunate, as he is one of the top ten most important financial regulators on the planet.

Carter followed up his post by linking several data sources that disprove Kashkari’s assumption, including a report from blockchain data firm Chainalysis that found only 0.34% of all crypto transactions in 2023 had connections to illegal activity.

The report revealed that illicit transactions in crypto peaked in 2019 at just 1.29%.

At a Wisconsin Town Hall event hosted by the Chippewa Falls Area Chamber of Commerce on Oct. 21, Minneapolis Fed President, Neel Kashkari, claimed that “very few transactions were actually happening” in crypto.

“They’re not paying for goods and services using crypto. It almost never happens unless people are buying drugs or other illegal activities,” said Kashkari.