The U.S. Securities and Exchange Commission (SEC) has announced the formation of the Cyber and Emerging Technologies Unit (CETU) to address fraud and cyber-related crimes within the blockchain industry. T
his unit, which will replace the Crypto Assets and Cyber Unit, will be led by Laura D’Allaird and supported by a team of 30 fraud specialists and attorneys.
Strengthening Security in the Digital Asset Space
SEC’s acting chair, Mark Uyeda, emphasized that the unit’s purpose goes beyond protecting investors. By targeting cybercriminals and fraudulent schemes, the SEC aims to boost confidence in new technologies while ensuring that innovation can progress without exploitation by bad actors.
The creation of CETU comes at a time when the cryptocurrency industry is witnessing a surge in fraudulent activities, ranging from pump-and-dump memecoins to high-profile exchange hacks. These cases have raised concerns about the security of blockchain-based financial systems.
Major Threats in the Crypto Industry
One of the most alarming incidents in recent history was the $1.5 billion hack of Bybit, allegedly carried out by North Korea’s Lazarus Group. This event marked the largest crypto heist ever recorded, even surpassing the $1 billion stolen from the Central Bank of Iraq by Saddam Hussein in 2003.
Beyond exchange hacks, politically affiliated memecoin scams have also been on the rise. Coins like MELANIA and LIBRA were launched and abandoned in classic pump-and-dump schemes, leaving investors with significant losses.
Expanding Focus Beyond Blockchain
While CETU will focus heavily on crypto-related fraud, it will also tackle financial crimes linked to artificial intelligence (AI), social media fraud, and cybersecurity threats. Specific concerns include hacking incidents that target nonpublic information, account takeovers in retail brokerage platforms, and security risks faced by regulated financial institutions.
Laura D’Allaird, who previously co-led the Crypto Assets and Cyber Unit, will now oversee CETU’s expanded efforts to monitor emerging threats and enforce stronger regulations in digital markets.