SEC Launches Cross-Border Task Force to Combat Crypto Fraud, Targets Pump-and-Dump Schemes
The U.S. Securities and Exchange Commission (SEC) has established a new Cross-Border Task Force to tackle transnational fraud, with an initial focus on offshore companies violating federal securities laws. Market manipulation, particularly pump-and-dump schemes, will be a primary target. The task force will also pursue intermediaries and gatekeepers facilitating such activities.
Pump-and-dump schemes remain rampant in the crypto ecosystem, often involving low-liquidity altcoins and meme tokens. Bad actors artificially inflate prices, hype the assets, then dump holdings on retail investors—the most frequent victims of these coordinated scams. The SEC's move follows repeated warnings from regulators like the CFTC about such risks in digital asset markets.
