SEC Scales Up Crypto Assets and Cyber Unit
May 3, 2022
Securities and Exchange Commission started the allocation of 20 additional
positions to the unit responsible for protecting investors in crypto markets and
from cyber-related threats. The newly renamed Crypto Assets and Cyber Unit
(formerly known as the Cyber Unit) in the Division of Enforcement will grow to
50 dedicated positions.
The expanded Crypto Assets and Cyber Unit will leverage the agency’s
expertise to ensure investors are protected in the crypto markets, with a focus
on investigating securities law violations related to:
Crypto asset exchanges;
Crypto asset lending and staking products;
Decentralized finance ("DeFi") platforms;
Non-fungible tokens ("NFTs"); and
In addition, the unit has brought numerous actions against SEC registrants and public companies for failing to maintain adequate cybersecurity controls and for failing to appropriately disclose cyber-related risks and incidents. The Crypto Assets and Cyber Unit will continue to tackle the omnipresent cyber-related threats to the nation’s markets. "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," said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. "The bolstered Crypto Assets and Cyber Unit will be at the forefront of protecting investors and ensuring fair and orderly markets in the face of these critical challenges." The infusion of 20 additional positions into the Crypto Assets and Cyber Unit will bolster the ranks of its supervisors, investigative staff attorneys, trial counsels, and fraud analysts in the agency’s headquarters in Washington, DC, as well as several regional offices.