The SEC expanding its crypto-asset enforcement division to combat crypto crime

The Securities and Exchange Commission (SEC) said that it is adding 20 posts to its crypto-asset enforcement division in order to boost its efforts to combat cryptocurrency-related cybercrime.

The Securities and Exchange Commission announced on Tuesday that a crypto-crime-focused team under its enforcement division will expand to 50 people.

Why SEC expanding the crypto-crime-focused team?

According to SEC chairman Gary Gensler, substantially doubling the size of this area will enable the SEC to find cybersecurity disclosure and control vulnerabilities.

According to the SEC, the unit, which was founded in 2017, has conducted over 80 enforcement actions relating to fraudulent and unregistered crypto-asset offers, resulting in at least US$2 billion in monetary relief.

In addition to crypto-asset offerings, the unit will investigate potential violations concerning crypto-asset lending and staking products, decentralized financial platforms, non-fungible tokens, and stablecoins.

“The Securities and Exchange Commission (SEC) is a regulator with an enforcement division, not a regulator.” “Why are we leading with enforcement in crypto?” tweeted SEC Commissioner Hester Peirce on Wednesday.

Growing crypto-crime

Specialist Manchester police investigators swooped on a worldwide cryptocurrency scam in July 2021, seizing USB sticks and an online safe storing £16 million in digital coins, principally Ethereum.

After raiding the residence of a drug dealer who used digital assets to buy and sell class A drugs a month prior, Leicestershire police confiscated ten different varieties of cryptocurrencies.

Both efforts bear no resemblance to the Metropolitan Police’s £180 million cryptocurrency seizure in the same year.

But these three, as well as a slew of others, are part of a growing crypto-crime tsunami exposed today by a series of freedom of information requests.

How Investors can be cautious?

Professor Shukla has advised individuals not to invest in cryptocurrency since the entire scenario (of cryptocurrency investment) appears to be a Ponzi scheme based on speculation and manipulation by cryptocurrency owners.

Divakar Prayaga, CoinDCX’s SVP and Head of Information Security, advises investors to avoid clicking on phishing links sent through email or SMS, as well as downloading unapproved software or malicious files from the Internet that may contain malware.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing