The U.S. financial regulator, the SEC, is stepping up its fight against international financial scams by forming a dedicated task force. A primary target will be those shady “pump and dump” schemes increasingly found in the cryptocurrency world.
SEC Assembles Cross-Border Fraud Squad
SEC Chairman Paul S. Atkins announced the formation of the Cross-Border Task Force. This new team will bring together the SEC’s investigative abilities and make sure the agency uses all its legal powers to combat fraud that crosses international lines.
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
Initially, the task force will concentrate on investigating manipulation occurring in markets by companies based abroad. This is particularly relevant to places like China, where it’s often more difficult to enforce rules designed to protect investors.
SEC Chairman Paul S. Atkins highlighted the agency’s dedication to protecting those who invest when speaking about the task force’s launch.
“We encourage global companies to seek funding in U.S. markets,” stated Chairman Atkins. “However, we will not stand by while dishonest entities – be they companies, brokers, or opportunistic traders – try to use international borders to sidestep U.S. safeguards for investors.”
A press release from the SEC also indicated the task force will closely examine auditors, underwriters, and other important players who help foreign companies gain access to American investment markets.
Margaret A. Ryan, who heads the SEC’s Division of Enforcement, stressed that the task force would use the division’s expertise to fight manipulation occurring on a global scale.
“This effort strengthens our ability to enforce securities laws and shield U.S. investors from strategies designed to take advantage of the interconnected global financial system,” she said.
The creation of this task force aligns with the SEC’s broader Crypto initiative. This seeks to provide a more secure environment for investors involved in digital assets.
Crypto “Pump and Dumps” on the Rise
This initiative comes as “pump and dump” scams are becoming more common in the crypto space. These scams typically focus on tokens with low trading volumes, like meme coins or quickly created alternative cryptocurrencies. These tokens are artificially boosted through aggressive marketing. After the price rises, those involved in the scam sell their holdings, leaving ordinary investors with significant losses.
A recent instance involved a token named CR7 on the Solana blockchain. The fake token’s market capitalization rose to over $5 million before plummeting to zero. An earlier version of the same scam caused even greater damage, costing unsuspecting investors $143 million.
Additionally, Kanye West’s token debuted in August but fell rapidly after a brief increase. Similar patterns have been observed with other cryptocurrencies linked to celebrities.
Beyond celebrity-endorsed tokens, bigger scandals have also shaken the crypto market. The LIBRA project collapsed amidst allegations of insider trading and significant withdrawals of funds. The project team is said to have removed $87 million from liquidity pools, and it’s reported that a high-speed trader withdrew $107 million, resulting in a token price drop of roughly 94%.
The SEC’s Cross-Border Task Force marks an important move in addressing the increasing problem of financial fraud that spans international borders.
Michael Adeleke
Michael Adeleke is a passionate crypto journalist known for breaking down complex blockchain concepts and market trends into clear, engaging narratives. He specializes in delivering timely news and sharp market analysis that keeps crypto enthusiasts informed and ahead of the curve. With an engineering background and a degree from the University of Ibadan, Michael brings analytical depth and precision to every piece he writes.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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