The Securities and Exchange Commission (SEC) in the US has recently announced the expansion of its Crypto Assets and Cyber Unit, with the addition of 20 new positions. This move comes as part of the regulator’s efforts to strengthen investor confidence and increase transparency in the market.
The SEC, previously known for its Cyber Unit, has now rebranded and expanded its focus to include cryptocurrency-related enforcement actions. The unit has been successful in bringing over 80 enforcement actions since 2017, saving investors and stakeholders more than $2 billion from fraudulent and unregistered crypto assets.
Despite these achievements, the SEC acknowledges the increasing threat of scams involving NFTs, crypto assets, exchanges, DeFi platforms, and stablecoins. To address these challenges, the enforcement team will now include additional supervisors, investigative staff attorneys, trial counsels, and fraud analysts in both the SEC’s Washington DC headquarters and regional offices.
Gary Gensler, the chair of the SEC, emphasized the importance of policing wrongdoing in the crypto markets and improving cybersecurity controls and disclosures. Gurbir Grewal, director of the SEC’s Division of Enforcement, highlighted the impact of illegal activities on retail investors in the rapidly evolving crypto space.
Cyber-related threats continue to pose risks to financial markets and participants, with investment fraud ranking as the second highest-grossing cybercrime type in 2021, costing victims nearly $1.5 billion as reported to the FBI.
The SEC’s strengthened Crypto Assets and Cyber Unit aims to protect investors, promote fair and orderly markets, and combat fraudulent activities in the cryptocurrency space. By expanding its expertise and resources, the SEC is taking proactive steps to address the challenges posed by cyber threats and fraudulent schemes in the digital asset market.