The Securities and Exchange Commission (SEC) has created a new Cyber and Emerging Technologies Unit (CETU). This new entity aims to protect investors from bad actors utilizing technology to commit fraud and replaces the previous Crypto Assets and Cyber Unit. CETU will be led by Laura D’Allaird and will be staffed by 30 fraud specialists and attorneys.
Recently, D’Allaird posted about her new position on LinkedIn:
“I’m happy to share that I’m starting a new position as Co-Chief of the Crypto Assets and Cyber Unit at the U.S. Securities and Exchange Commission! I will be transitioning over the next several weeks from my position as counsel to Commissioner Lizárraga as he prepares to leave the Commission on January 17, 2025. I am very excited to join this Unit!”
She has been with the Commission since 2016, having received her law degree from Columbia.
Acting Chairman Mark Uyeda issued the following statement:
“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. The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow. It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies.”
CETU will focus on:
- Fraud committed using emerging technologies, such as artificial intelligence and machine learning
- Use of social media, the dark web, or false websites to perpetrate fraud
- Hacking to obtain material nonpublic information
- Takeovers of retail brokerage accounts
- Fraud involving blockchain technology and crypto assets
- Regulated entities’ compliance with cybersecurity rules and regulations
- Public issuer fraudulent disclosure relating to cybersecurity
