The U.S. Securities and Exchange Commission (SEC) has formed a new enforcement body, the Cyber and Emerging Technologies Unit (CETU) to combat cyber-related misconduct and protect retail investors from fraudulent activities in the cryptocurrency sector.
The CETU, which replaces the former Crypto Assets and Cyber Unit, will be led by Laura D’Allaird and consists of approximately 30 fraud specialists and attorneys stationed across multiple SEC offices. The unit will work along with the Crypto Task Force, headed by Commissioner Hester Peirce, to ensure market integrity.
*SEC LAUNCHES CYBER AND EMERGING TECHNOLOGIES UNIT
*SEC CYBER UNIT WILL COMBAT FRAUD IN CRYPTO AMONG OTHER AREAS
It appears actual crime may not be legal? pic.twitter.com/fA0yImewNz
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“Under Laura’s leadership, this new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce. Importantly, the new unit will also allow the SEC to deploy enforcement resources judiciously,” Acting Chairman Mark T. Uyeda said in the announcement. “The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow. It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies.”
The CETU’s staff is comprised of the best talents from the fintech and cyber fields, which will help the unit investigate and prosecute fraud in several high-risk domains, including:
- AI and Machine Learning Fraud: Misuse of artificial intelligence and automation for deceptive investment schemes.
- Social Media and Dark Web Scams: Fraud conducted through social media, illicit online marketplaces, or fake websites.
- Crypto and Blockchain Fraud: Misrepresentation and misconduct involving digital assets and blockchain technology.
- Hacking and Insider Trading: Cyberattacks aimed at accessing material nonpublic information for illicit trading.
Also Read: Argentine Regulators Say They Can’t Intervene in $LIBRA Crypto Controversy
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