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The US Securities and Exchange Commission (SEC) is launching a new organization aimed at tackling crypto-related crime.
In a Thursday announcement, the SEC introduced the Cyber and Emerging Technologies Unit, which will collaborate with the regulator's crypto task force to “root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies.”
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The new unit will replace the Crypto Assets and Cyber Unit and will consist of approximately 30 fraud specialists and lawyers from various divisions of the SEC.
SEC attorney Laura D’Allaird, who was part of the legal team that took action against Kik Interactive and its Kin token sale in 2020, will head the unit. D’Allaird’s new unit is expected to continue working with the regulator’s crypto task force, reinforcing this regulatory stance.
The unit will target fraud related to blockchain, cryptocurrency, and artificial intelligence, as well as hackers seeking material nonpublic information and criminals using social media, the dark web, or fake websites to deceive retail investors.
Acting SEC Chairman Mark T Uyeda said the unit is also designed to facilitate innovation. “The [Cyber and Emerging Technologies Unit] will not only protect investors, but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow,” he said in the statement.
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Former SEC Commissioner Paul Atkins was nominated by Trump in December to take on the role of the agency's permanent chair. In the meantime, Uyeda is serving as acting chair. As one of his first initiatives, Uyeda created the SEC's Crypto Task Force, headed by Hester Peirce.
Last year, the SEC pursued 33 enforcement actions against individuals and companies linked to cryptocurrency fraud. $4.5 billion of the $8.2 billion in penalties the SEC enforced came from its case against Terraform Labs and its founder, Do KwonForce.
