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SEC Launches Cyber Unit to Protect Investors

 
Rajpalsinh Parmar
Written By 
Rajpalsinh Parmar
 
Harsh Chauhan
Edited by 
Harsh Chauhan
February 20, 2025
SEC Launches Cyber Unit to Safeguard Retail Crypto Investors

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.  

“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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Rajpalsinh Parmar
Written by Rajpalsinh Parmar

Rajpalsinh is a crypto journalist with over three years of experience and is currently working with CryptoNewsZ. Throughout his journey, he has honed skills like content optimization and has developed expertise in blockchain platforms, crypto trading bots, and hackathon news and events. He has also written for TheCryptoTimes, where his ability to simplify complex crypto topics makes his articles accessible to a wide audience. Passionate about the ever-evolving crypto space, he stays updated on industry trends to provide well-researched insights. Outside of work, gaming serves as his stress buster, helping him stay focused and refreshed for his next big story. He is always eager to explore new blockchain innovations and their potential impact on the global financial ecosystem.