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- SEC targets global financial fraud with new task force.
- Pump-and-dump scams in crypto are on the rise.
- Task force scrutinizes foreign companies and market gatekeepers.
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The U.S. Securities and Exchange Commission (SEC) has taken a major step to tackle international financial fraud with the launch of its Cross-Border Task Force. Focused on preventing market manipulation and cross-border scams, this initiative signals a heightened crackdown on crypto-based pump-and-dump schemes that have recently surged.
A Strong Regulatory Response to Global Fraud
SEC Chairman Paul S. Atkins highlighted the agency’s commitment to investor protection in a recent X post. The task force will consolidate investigative resources and use the full legal powers of the SEC to pursue bad actors, including foreign companies, intermediaries, and exploitative traders. Its initial mandate targets market manipulation tied to companies operating in jurisdictions with limited investor protections, such as China.
I'm pleased to announce the formation of the Cross-Border Task Force. This new task force will consolidate SEC investigative efforts and allow the SEC to use every available tool to combat transnational fraud. https://t.co/loDtj1CClV
— Paul Atkins (@SECPaulSAtkins) September 5, 2025
Margaret A. Ryan, Director of the SEC Division of Enforcement, emphasized that the task force will scrutinize auditors, underwriters, and market gatekeepers who facilitate access to U.S. capital markets. “This initiative strengthens our ability to enforce securities laws and protect American investors from schemes designed to exploit global financial systems,” she said.
Crypto Market Faces Rising Pump-and-Dump Scams
The task force comes as pump-and-dump schemes are increasingly common in the crypto sector. Low-liquidity tokens, including meme coins and hastily launched altcoins, are frequently targeted. Scammers inflate token values through aggressive promotion, then sell off holdings, leaving retail investors with steep losses.
Also Read: SEC Unveils Spring 2025 Crypto Rules for BTC & ETH Trading
High-profile examples include the CR7 token on the Solana blockchain, which briefly surged to a $5 million market cap before collapsing. Celebrity-linked tokens, such as rapper Kanye West’s coin, have also crashed shortly after launch. Larger-scale scandals, like the LIBRA project, saw insiders drain millions from liquidity pools, triggering massive price collapses.
SEC Initiative Strengthens Crypto Oversight
The Cross-Border Task Force aligns with the SEC’s broader Crypto initiative, aimed at creating safer conditions for investors navigating digital assets. By focusing on transnational schemes, the agency hopes to curb the global exploitation of the U.S. market and hold foreign actors accountable under U.S. securities laws.
The SEC’s new task force signals a decisive move against international market manipulation. With rising crypto scams and celebrity-linked token collapses, the initiative aims to safeguard investors and reinforce global financial integrity.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
