SEC Launches Cyber and Emerging Technologies Unit to Combat AI and Crypto Fraud

US government reveals new cybercrime unit targeting AI fraud, crypto and other scams

The US Securities and Exchange Commission has confirmed the appointment of Laura D'Allaird as chief of its new Cyber and Emerging Technologies Unit (CETU), aimed at protecting retail investors from cybercrime amid a quickly evolving threat and cyber landscape. CETU replaces the Crypto Assets and Cyber Unit, formed in 2022 and co-chiefed by D'Allaird for the three months leading up to the creation of the new body. Around 30 fraud specialists and attorneys from multiple SEC offices are said to be leading the newly formed unit. "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," noted Acting Chairman Mark T Uyeda. "It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies." The announcement details CETU's workers' "substantial fintech and cyber-related experience," which will help it to address fraud using emerging technologies like AI and ML. CETU will also cover crime across social media, the dark web, hacking, account takeovers, blockchain and crypto, and more. The news coincides with the launch of a new crypto task force led by Commissioner Hester Peirce - one with the aim of establishing a "sensible regulatory path that respects the bounds of the law." Uyeda summarized: "The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow."

Just In: US SEC Launches New Unit to Tackle Cyber and Crypto-Related Misconduct

The U.S. Securities and Exchange Commission (SEC) has announced the formation of the Cyber and Emerging Technologies Unit (CETU) to address cyber-related fraud and protect retail investors. The new unit will focus on misconduct involving digital assets, artificial intelligence, and other emerging technologies. Laura D'Allaird has been appointed as the chief of CETU, which replaces the Crypto Assets and Cyber Unit. The new unit consists of 30 fraud specialists and attorneys from various SEC offices. The SEC stated that CETU will play a key role in tackling fraud linked to blockchain technology, crypto assets, and online scams. The unit will also focus on cybersecurity compliance for regulated entities and public issuers. According to SEC Acting Chairman Mark T. Uyeda, CETU will work alongside the Crypto Task Force led by Commissioner Hester Peirce. "The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow," Uyeda said. The SEC has maintained an active stance in overseeing digital markets. With the rise of artificial intelligence and machine learning, CETU will ensure these technologies are not misused to deceive investors.

SEC's new tech unit could make meme coins a thing of the past

On February 20, 2025, the U.S. Securities and Exchange Commission (SEC) announced the establishment of the Cyber and Emerging Technologies Unit (CETU) to combat cybercrime and fraud in the blockchain and cryptocurrency sectors. The CETU will succeed the SEC's former Crypto Assets and Cyber Unit and focus on safeguarding retail investors from fraud and misconduct within emerging technologies. The new unit will comprise approximately 30 fraud specialists and attorneys from various SEC offices, with Laura D'Allaird, who previously led the Crypto Assets and Cyber Unit, appointed as the head. Acting SEC Chairman Mark Uyeda emphasized that the unit aims not only to protect investors but also to promote innovation by ensuring a clear and efficient market. The CETU will investigate fraudulent activities associated with securities transactions, placing particular emphasis on scams involving social media, the dark web, and deceptive websites. The creation of the CETU coincides with ongoing challenges in the cryptocurrency industry, including significant incidents of fraud. A notable case is the LIBRA meme coin scandal involving Argentine President Javier Milei, which resulted in over $250 million lost after the coin experienced a rapid pump and dump. The decentralized exchange, Jupiter, confirmed that the launch of the Milei-endorsed coin was well-known within the meme coin community, raising concerns of insider trading and fraud. XCSSET malware is back and it's more dangerous than ever In 2024, the SEC executed 33 enforcement actions related to crypto fraud, resulting in penalties amounting to $8.2 billion, largely attributed to the case against Terraform Labs and its founder, Do Kwon. The SEC's stringent regulatory stance has been amplified under the Biden administration, which has seen an increase in efforts to regulate digital assets and safeguard investors from fraud. However, some industry experts advocate for improvements in the SEC's regulatory approach. According to Bloomberg, Nic Puckrin, co-founder of The Coin Bureau, pointed out the need for clearer regulations, particularly regarding meme coins, which have been increasingly associated with scams and pump-and-dump schemes. The SEC's new unit seeks to enhance oversight and transparency while navigating the complex landscape of cryptocurrencies and emerging technologies. The CETU's agenda will leverage its team's extensive fintech and cyber experience to address misconduct in several priority areas, including fraud committed through emerging technologies such as artificial intelligence and machine learning, the use of social media and false websites for fraud, hacking to gain nonpublic information, takeovers of retail brokerage accounts, blockchain technology fraud, and compliance with cybersecurity regulations by regulated entities.