FX.co ★ SEC expands cryptocurrency unit to fight fraud

The US Securities and Exchange Commission (SEC) has added 20 positions to its Crypto Assets and Cyber Unit, doubling the size of the division responsible for protecting investors in cryptocurrency markets.

The expanded unit would have 50 dedicated positions, SEC said.

According to SEC Chair Gary Gensler, the unit would intensify monitoring of crypto fraud.

"The US has the greatest capital markets because investors have faith in them, and as more investors access the crypto markets, it is increasingly important to dedicate more resources to protecting them," Gensler said.

The Crypto Assets and Cyber Unit, which was founded in 2017, has already brought more than 80 enforcement actions related to fraudulent and unregistered crypto asset offerings and platforms, resulting in monetary relief totaling more than $2 billion.

According to SEC's press release, the unit would focus on preventing fraud related to crypto asset offerings, exchanges, lending and staking products, DeFi platforms, NFTs, and stablecoins.

Gurbir Grewal, SEC Enforcement Director, stated the division's expansion was connected to a rising number of cybersecurity threats in the US.

"Crypto markets have exploded in recent years, with retail investors bearing the brunt of abuses in this space. Meanwhile, cyber-related threats continue to pose existential risks to our financial markets and participants," Grewal noted.

The 20 additional positions would include supervisors, investigative staff attorneys, trial counsels, and fraud analysts.

In September 2021, Gensler told the US Senate Banking Committee that the regulator could use "a lot more people" to assess and regulate the market.