SEC Reveals New Anti-Crypto-Fraud Unit: Details

TheSEC continues its reorganization as the agency justlaunched the Cyber and Emerging Technologies Unit (CETU), a new initiative aimed at combating cyber-related misconduct and fraud in the technology sector. This unit replaces the former Crypto Assets and Cyber Unit and brings together about 30 legal and fraud specialists from various SEC offices.

So, what's CETU responsible for?

Quite a bit. Fraud fueled by AI and machine learning, misleading schemes on social media and the dark web, and even cases of hacking to obtain sensitive financial information, are just the beginning.

Takeovers of retail brokerage accounts andcrypto scams are also under scrutiny, as is ensuring that regulated entities are actually complying with cybersecurity regulations. Even public companies that misrepresent cybersecurity risks could find themselves in the crosshairs.

Laura D'Allaird is leading the charge. She has been at the SEC for years, most recently as co-chief of the now-defunct Crypto Assets and Cyber Unit. She has also served as counsel to Commissioner Jaime Lizárraga and the director of enforcement.

The SEC itself has been undergoing changes since January of this year.Mark Uyeda took over as acting chairman last month, and the agency has begun to restructure how it handles crypto market regulation, including recently closing its dedicated crypto enforcement unit and starting from scratch.

The message is clear: innovation in finance is welcome, but bad actors exploiting new technologies will not get a free pass.