How Does the Severity of the Penalty Differ between CEX and DEX Manipulation Cases?

The severity of the penalty is generally tied to the regulator's ability to identify and exercise jurisdiction over the perpetrator. CEX manipulation cases often result in more severe, enforceable penalties (large fines, jail time) because the entities and individuals are identifiable and fall clearly under regulatory authority.

DEX manipulation (MEV) is harder to penalize directly, as the actors are often pseudonymous, though regulators are exploring ways to target developers or interfaces that facilitate the manipulation.