The U.S. Securities and Exchange Commission (SEC) has launched the Cyber and Emerging Technologies Unit (CETU), a newly formed division aimed at combating cyber-related misconduct and fraud in the cryptocurrency sector. The unit, which replaces the SEC’s previous Crypto Assets and Cyber Unit, will be led by SEC attorney Laura D’Allaird and staffed with approximately 30 fraud specialists and attorneys drawn from across the agency.
The SEC’s announcement highlights the growing need to regulate emerging digital financial markets, particularly those vulnerable to fraud, insider trading, and cybersecurity breaches.
Acting SEC Chairman Mark T. Uyeda described the new unit as a critical component of the agency’s efforts to protect investors while enabling innovation to thrive.
“The [Cyber and Emerging Technologies Unit] will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow,” Uyeda stated.
A Targeted Approach to Crypto and AI Fraud
The Cyber and Emerging Technologies Unit will focus on a broad range of cyber-related financial crimes, including fraud involving blockchain technology, cryptocurrency schemes, artificial intelligence, and the misuse of social media. The SEC cited an increasing number of bad actors using digital platforms, the dark web, and fraudulent websites to deceive investors. The unit will also investigate hacking activities aimed at accessing material nonpublic information.
In 2024, the SEC brought 33 enforcement actions against individuals and firms engaged in cryptocurrency-related fraud. One of the most significant cases involved Terraform Labs and its founder, Do Kwon, with penalties amounting to $4.5 billion—more than half of the total $8.2 billion in fines levied by the agency last year. The new unit is expected to continue building on these enforcement efforts, with an emphasis on deterring illegal activities in decentralized finance (DeFi) and initial coin offerings (ICOs).
Leadership and Coordination with SEC’s Crypto Task Force
Laura D’Allaird, who previously co-led the SEC’s Crypto Assets and Cyber Unit, will direct the CETU. D’Allaird played a key role in past enforcement actions, including the SEC’s case against Kik Interactive for its unregistered Kin token sale in 2020. Her leadership is expected to bring a rigorous approach to prosecuting fraudulent activities while ensuring that the SEC provides clear regulatory guidance.
The CETU will work closely with the SEC’s Crypto Task Force, which was formed under Acting Chairman Uyeda and led by Commissioner Hester Peirce. The task force aims to refine the SEC’s regulatory approach toward digital assets, ensuring that oversight remains stringent while balancing the need for innovation in the space.
Regulatory Outlook and Industry Impact
The SEC’s decision to replace its Crypto Assets and Cyber Unit with the CETU signals a broader regulatory shift in response to evolving financial technologies. Former SEC Commissioner Paul Atkins, nominated by former President Trump as the agency’s permanent chair, is expected to play a key role in shaping the SEC’s future crypto policies. Meanwhile, Uyeda’s tenure has been marked by efforts to clarify existing regulations and strengthen enforcement mechanisms.
The formation of the CETU comes amid growing concerns over the rise of AI-driven financial fraud and high-profile cases of insider trading involving cryptocurrency assets. Recent incidents, such as the February 2025 collapse of the LIBRA memecoin, have intensified scrutiny over regulatory oversight in the digital asset space. The LIBRA token, allegedly promoted by Argentine President Javier Milei, resulted in investor losses exceeding $251 million after its price was artificially inflated and subsequently dumped.
With retail investors facing increasing risks from fraudulent digital asset schemes, the SEC’s latest initiative is expected to set the stage for a more structured and proactive approach to cybersecurity and crypto regulation.
