SEC Launches Cross-Border Task Force Targeting Crypto Fraud

The U.S. Securities and Exchange Commission has formed a new Cross-Border Task Force to combat international market manipulation, with a sharp focus on cryptocurrency pump-and-dump schemes. Chairman Paul S. Atkins announced the initiative via social media, framing it as a consolidation of investigative resources to tackle transnational fraud.

Foreign-based companies, particularly those operating in jurisdictions with weaker investor protections, will face heightened scrutiny. The task force will also examine gatekeepers—auditors, underwriters, and other intermediaries—that facilitate access to U.S. markets for potentially fraudulent actors.

This move signals the SEC's escalating efforts to protect domestic investors from global financial risks as crypto markets continue to mature. Market participants should anticipate increased enforcement actions targeting cross-border flows and offshore entities.