SEC Adding 20 Team Members to Ramp up Crypto Enforcement Unit

Quick take:

• The SEC is planning to hire 20 team members for its crypto and cybersecurity unit.
• The enhanced task force will help to protect investors from recurring digital asset scams.

The Securities and Exchange Commission (SEC) of the United States intends to nearly double the size of its Crypto Asset and Cyber unit.

The statement came on Tuesday when the SEC announced the appointment of an extra 20 employees to boost investor safety in the cryptocurrency markets.

An improved task force for better safety

The SEC's crypto assets and cyber team used to be a team of 30, but it has now grown to a team of 50, thanks to the hiring of 20 new employees. Experts from a variety of professions will be among the 20 new hires, including staff attorneys, trial lawyers, and fraud analyzers.

Gary Gensler, SEC Chair, stated that by increasing the unit's size, the SEC would be able to stop more fraudulent actions in the crypto markets while also improving cybersecurity.

“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.”

Since its inception in 2017, the team has taken out more than 80 enforcement actions involving fraudulent crypto operations, such as scammy offerings and other illegal activities. Over $2 billion is estimated to have been recovered as a result of the combined actions.

The inclusion of new team members will help to improve the team and guarantee that investors are safeguarded in the crypto markets. The team will also focus on businesses that have failed to maintain the essential cybersecurity safeguards.

The Securities and Exchange Commission is now taking action against corporations that fail to report cyber-related assaults and risks.

The addition of new team members will help to boost the ante in terms of detecting and preventing illegal activity in the crypto market. 

With the global adoption of cryptocurrency, NFT, and the metaverse realm, scammers are trying to get their hands dirty on every single opportunity that they can catch. 

Such initiatives from regulators seem to be the need of the day to address, minimize and prevent such attacks to ensure the safety of investors in the crypto market.