The U.S. Securities and Exchange Commission (SEC) has set up a new team called the Cross-Border Task Force. Its job is to stop financial fraud that happens across different countries. The group will pay special attention to crypto pump-and-dump schemes, which have become a major risk for investors around the world. SEC Targets Market Manipulation Across Borders The global nature of financial markets makes it easy for bad actors to hide behind international borders. Fraudulent companies and traders often operate from countries where U.S. rules are harder to enforce. These include places like China and other jurisdictions with weak investor protections. To address this challenge, the SEC created the task force to combine its investigative teams and legal tools. Its first job will be to investigate market manipulation tied to foreign-based companies. The creation of the task force also connects with the SEC’s wider crypto initiative , which is meant to make the digital asset space safer. SEC Targets Global Fraud with New Task Force SEC Chairman Paul S. Atkins shared the news on X and explained why the task force is important. He made it clear that the U.S. welcomes global businesses but will not allow fraud to slip through loopholes. The SEC also announced that the task force will pay close attention to auditors, underwriters, and other gatekeepers. These groups often help foreign companies gain access to U.S. markets. If they knowingly or carelessly allow fraudulent activity, they will face strict action. This statement shows that the SEC’s focus is not just on the fraudsters themselves but also on those who support them. Crypto Pump-and-Dump Scams on the Rise Crypto markets have seen a rapid increase in pump-and-dump schemes. These scams usually target tokens with low trading volume, often memecoins or quickly created altcoins. Fraudsters push up the price through hype and heavy promotion. Once the price spikes, insiders sell their holdings, causing the token to crash and leaving everyday investors with severe losses. Several high-profile scandals underline just how widespread and damaging fraudulent crypto schemes have become. A fake CR7 token on Solana once ballooned to a $5 million market cap before crashing to zero. Meanwhile, an earlier version of the same coin had already drained $143 million from unsuspecting investors. Kanye West’s coin, which launched in August, enjoyed a brief surge before collapsing. This mirrors other celebrity-linked tokens that quickly lose value after launch. Furthermore, The downfall of the LIBRA project revealed an even more dramatic case. The token’s developers allegedly withdrew $87 million from liquidity pools. In addition, a sniper trader pulled out $107 million, causing the token’s value to fall by almost 95% . These cases highlight how easily retail investors can be exploited in fast-moving crypto markets. The post SEC Launches Cross-Border Task Force to Fight Global Crypto Fraud appeared first on TheCoinrise.com .
