The U.S. Securities and Exchange Commission (SEC) initiated 348 enforcement actions in fiscal year 2026, a 23.7% decrease from last year’s 456 cases, marking the lowest level since 1991. Highlights of this year’s cases included alleged Bitcoin mining fraud, violations by cryptocurrency trading platforms, and the FTX audit and settlement.
Multiple Cryptocurrency Fraud Cases Take Center Stage
In an announcement on November 11, the SEC charged three alleged cryptocurrency trading platforms and four investment clubs with participating in a fraud scheme that defrauded investors of at least $14 million. In a separate case, the SEC accused the founder of a Bitcoin mining company of embezzling $48.5 million; the company had previously raised more than $95.6 million from approximately 6,400 investors.
In terms of previous rulings, in February 2024, a jury found Ismael Zarco Sanchez guilty of securities fraud and registration violations for his involvement in the $300 million CryptoFX Ponzi scheme. In July 2024, the court ordered Michael Noble to pay $1.07 million in connection with his promotion of the BitConnect crypto-lending scheme.
Audit Negligence Sets a Precedent for the First Time
In April 2025, the SEC reached a settlement with Francis Decker, a partner at Prager Metis, who had been charged with professional negligence in the FTX audit for failing to meet professional auditing standards. This case marked a shift in regulatory focus toward the quality of audits for crypto companies.
Number of Law Enforcement Actions Hits a 35-Year Low
Under current SEC Chairman Paul Atkins, the number of enforcement actions fell to a historic low during his first full fiscal year in office. Standalone enforcement actions dropped from 303 in the previous year to 235. Crypto-related enforcement had already shown signs of decline the year before: In 2025, the SEC filed 13 crypto cases, far fewer than the 33 filed in 2024, five of which were filed before former Chairman Gary Gensler stepped down in January 2025.
In its annual report, the SEC stated that its newly established Office of Enforcement Analytics is utilizing “blockchain and funds flow analysis” technology to detect potential violations at an earlier stage, with the aim of enhancing targeted enforcement while improving regulatory efficiency.
Further Reading
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