US SEC Introduces Cyber and Emerging Technologies Unit to Combat Crypto Fraud
The United States SEC has replaced its Crypto Assets and Cyber Unit with the Cyber and Emerging Technologies Unit (CETU), which will focus on protecting investors from fraud in emerging technologies. Key details include:
- CETU will have around 30 staff members, 20 less than the previous unit.
- Laura D’Allaird will lead CETU.
- The unit aims to combat fraudulent activities involving AI, machine learning, social media, and the dark web.
Mark T. Uyeda, acting Chairman of the SEC, stated that CETU will support investor protection while promoting innovation and market efficiency.
Expected Impact on Crypto Market
- Crypto scams reached $12.4 billion in 2024, with high-yield investment schemes accounting for 83% of this revenue.
- Notable scams include significant losses linked to the LIBRA memecoin, backed by Argentina’s President Javier Milei.
- Fraudsters exploit varying crypto regulations across jurisdictions to target the expanding Web3 market.
The establishment of CETU is seen as a step to restore confidence in the crypto market amidst rising fraud incidents.