SEC Focuses on Cryptocurrency Fraud as New Inspector General Takes Office

The U.S. Securities and Exchange Commission (SEC) has set cryptocurrency fraud as a top priority under the direction of its newly appointed Acting Inspector General, Katherine Reilly. A report from her office reveals that cryptocurrency scams make up 18% of all investor complaints filed with the SEC. In 2023 alone, retail investors lost $3.96 billion to such fraudulent schemes. Reilly has highlighted two key challenges facing the SEC: a lack of resources and a shortage of experts in digital assets. The current prohibition on employees owning digital assets is impeding the recruitment of skilled tech professionals.