The SEC launches a new unit to tackle fraud in cryptocurrency and emerging tech sectors. CETU aims to protect investors and prevent technology misuse.
Strengthening Crypto Fraud Protection
The Securities and Exchange Commission's new Cyber and Emerging Technologies Unit (CETU) is set to enhance efforts to combat cryptocurrency fraud. The transformation from the Crypto Assets and Cyber Unit to CETU comes in response to an increase in scams targeting retail investors. Led by Laura D’Allaird, CETU will leverage a team of 30 specialists to investigate and prosecute bad actors involved in market manipulation and crypto asset hacking.
Tackling AI-Based Fraud
AI-driven fraud represents a critical focus for CETU. This new platform will combat fraudulent schemes that use generative AI to create fake websites and phishing schemes. This aims to protect investors from new threats associated with advanced technologies.
Enhancing Cybersecurity in Financial Markets
CETU will also focus on strengthening cybersecurity to protect confidence in financial markets. Including measures against hacking and data breaches, this action reflects the SEC's commitment to maintain market efficiency and investor trust. The unit, led by Laura D’Allaird, will complement other SEC structures in combating cyber threats.
With CETU, the SEC aims to balance innovation and regulation, curbing fraud while supporting legitimate projects in high-tech sectors.
