SEC Announces New Cyber Unit to Protect Against Cryptocurrency Fraud

BREAKING: The Securities and Exchange Commission has taken a bold step forward in its mission under President Trump with the launch of the Cyber and Emerging Technologies Unit, or CETU.

Announced this morning, this specialized division is designed to tackle cyber-related misconduct and shield everyday investors from threats lurking in the rapidly evolving world of emerging technologies such as cryptocurrency and artificial intelligence. Leading the unit is Laura D’Allaird, who has been appointed chief, bringing her expertise to oversee a team of roughly 30 fraud specialists and attorneys stationed across various SEC offices. This new initiative replaces the former Crypto Assets and Cyber Unit, signaling a shift toward a broader, more proactive approach to enforcement.

Acting Chairman Mark T. Uyeda emphasized the significance of this development, highlighting how the CETU will work hand-in-hand with the Crypto Task Force, currently spearheaded by Commissioner Hester Peirce. Under D’Allaird’s guidance, the unit aims to strike a careful balance, cracking down on bad actors while fostering an environment where innovation can thrive. Uyeda noted that the team’s efforts will not only safeguard investors but also pave the way for capital formation and market efficiency. By targeting those who exploit cutting-edge tools to deceive or harm, the SEC hopes to bolster public trust in new technologies and ensure they serve as engines of progress rather than vehicles for fraud.

A Closer Look at CETU’s Priorities

The Cyber and Emerging Technologies Unit is equipped to tackle a wide range of challenges, drawing on the staff’s deep knowledge of fintech and cybersecurity. The focus will be on rooting out misconduct tied to securities transactions, with a keen eye on several key areas. Fraudsters leveraging artificial intelligence or machine learning to deceive investors will find themselves in the unit’s crosshairs, as will those using social media, the dark web, or fake websites to carry out their schemes. The team is also tasked with addressing hacking incidents aimed at stealing sensitive, nonpublic information that could disrupt markets or harm investors. Account takeovers at retail brokerages—an increasingly common threat—fall under the unit’s purview as well.

Beyond these cyber-centric priorities, the CETU will keep a close watch on fraud involving blockchain and crypto assets. The unit won’t stop at chasing individual wrongdoers, either. Regulated entities, such as brokerages and public companies, will face scrutiny to ensure they’re complying with cybersecurity rules and providing accurate disclosures about cyber risks. This comprehensive approach reflects the SEC’s recognition that the intersection of technology and finance is a double-edged sword—full of opportunity, yet ripe for abuse if left unchecked.