SEC Launches Cross-Border Task Force to Combat Transnational Fraud
The United States Securities and Exchange Commission (SEC) has formed a new cross-border task force to combat transnational fraud, including pump-and-dump schemes, in a bid to protect US investors. The task force will focus on investigating potential violations of US federal investment laws by offshore companies, with a particular emphasis on market manipulations.
The SEC’s move is part of a broader effort to strengthen its enforcement efforts and improve protection for US investors. The task force will work to identify and prosecute bad actors who attempt to use international borders to evade US laws and regulations. According to SEC Chairman Paul Atkins, “We welcome companies from all over the world to seek access to the US capital markets, but we will not tolerate bad actors – whether companies, intermediaries, gatekeepers, or exploitative dealers – who try to use international limits to frustrate and avoid the protection of US investors.”
Pump and Dump Schemes in Crypto
Pump-and-dump schemes are a type of fraud that involves artificially inflating the price of a thinly traded coin or token, often through false or misleading promotional activities. These schemes can result in significant financial losses for unsuspecting investors, who are often retail investors. The SEC has warned investors to be cautious of these schemes, which can be particularly prevalent in the cryptocurrency market.
The task force will also focus on gatekeepers, including auditors and underwriters, who enable bad actors to access US capital markets. The SEC will work to identify and hold accountable those who facilitate fraudulent activities, including those who provide false or misleading information to investors.
Efforts to Combat Transnational Fraud
The SEC’s cross-border task force is part of a broader effort to combat transnational fraud and protect US investors. The agency will work with other regulatory bodies, including the US Commodity Futures Trading Commission, to share information and coordinate enforcement efforts. The SEC will also consider new disclosure guidelines and rule changes to improve protection for US investors.
The formation of the cross-border task force is a significant step in the SEC’s efforts to combat transnational fraud and protect US investors. As the SEC continues to evolve and adapt to new challenges, it is likely that we will see increased enforcement activity in the coming months and years. For more information on the SEC’s efforts to combat transnational fraud, visit https://crypto.news/sec-announces-cross-border-task-force-to-combat-fraud/
