SEC's New Cyber Unit Tasked with Blockchain Securities Fraud

The SEC has recently created a Cyber Unit focused on investigating digital misconduct and fraud to protect retail investors.

Market manipulation using false information spread through social media.

Cyber threats related to trading platforms and critical market infrastructure.

Most importantly, violations involving distributed ledger technology and initial coin offerings.

"Cyber-related threats and misconduct are among the greatest risks facing investors and the securities industry. The Cyber Unit will enhance our ability to detect and investigate cyber threats through increasing expertise in an area of critical national importance."

The SEC Enforcement Division is serious when it comes to protecting retail investors.

The Cyber Unit will apply techniques leveraging data analytics and technology to identify large-scale misconduct and leverage personnel from around the country.

"By dedicating additional resources and expertise to developing strategies to address misconduct that victimizes retail investors, the division will better protect our most vulnerable market participants."

In addition to the Cyber Unit, the SEC created the Distributed Ledger Technology Working Group.

The group "Focuses on studying emerging applications of the distributed ledger technology in the financial industry."