
Crypto News: US SEC Unveils CETU Cyber Unit to Crack Down on Surging Crypto Scams
Key Notes
Key Notes:
The reorganized unit reduces staff by 40% while expanding scope beyond crypto to include AI and social media-based fraudulent activities.Collaboration between CETU and Commissioner Peirce’s Crypto Task Force signals a balanced approach to regulation and innovation support.The recent surge in sophisticated crypto scams reaching $12.4B highlights the urgent need for specialized oversight in emerging technologies.
The United States Securities and Exchange Commission (SEC) announced on Thursday the replacement of the Crypto Assets and Cyber Unit with the Cyber and Emerging Technologies Unit (CETU). The newly created CETU will consist of around 30 fraud specialists to help protect retail investors from bad actors in emerging technologies.
According to the announcement, CETU will be headed by Laura D’Allaird, and consist of 20 fewer staff members compared to the previous group created in 2022 to focus on crypto frauds.
“Under Laura’s leadership, this new unit will complement the work of the Crypto Task Force led by Commissioner Hester Peirce. Importantly, the new unit will also allow the SEC to deploy enforcement resources judiciously. The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow. It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies,” Mark T. Uyeda, acting Chairman of the US SEC, noted.
In addition to crypto and blockchain space, the staff members of CETU will prioritize fraudulent activities using emerging tech, led by artificial intelligence and machine learning. The CETU unit will also work to combat the use of social media, dark web, or false websites to promote fraudulent activities.
Donald Trump’s administration has made tangible measures since taking over the leadership role earlier this year to ensure a seamless mainstream adoption of digital assets and blockchain technology. Moreover, crypto scams have become prevalent in the recent past, especially via memecoins.
According to a recent report from Chainalysis, crypto scams reached $12.4 billion in 2024, with the use of AI and sophisticated investment schemes leading the way. Interestingly, Chainalysis highlighted that high-yield investment schemes and ‘pig butchering’ scams have accounted for 83 percent of the cryptocurrency fraud revenue, which has so far surpassed $9 billion.
1/10 Today, we published our scams section of our Crypto Crime Report, revealing that 2⃣0⃣2⃣4⃣ is set to be a record-year for scammers. What else did we find? We’ve pulled some of the most interesting figures in the 🧵thread below 👇
— Chainalysis (@chainalysis) February 13, 2025
The creation of CETU under the Trump administration will help restore confidence in the crypto market amid heightened rug pulls by prominent figures led by national leaders. For instance, LIBRA memecoin, which was backed by Argentina’s President Javier Milei, saw nearly 86 percent of all its investors lose more than $251 million.
However, fraudsters have exploited the varying crypto regulations across different jurisdictions to take advantage of the expanding Web3 market. Ki Young Ju, founder and CEO of CryptoQuant, noted that bad actors have expanded their operations from X platform to GitHub in an attempt to convince investors of their legitimacy as builders.
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