SEC establishes special task force to combat cross-border trading fraud targeting U.S. investors

ChainCatcher news, according to the official announcement, the U.S. Securities and Exchange Commission (SEC) has announced the establishment of a Cross-Border Special Task Force to combat cross-border trading fraud that harms U.S. investors.

The initial focus of the Cross-Border Special Task Force is to investigate potential violations of U.S. federal securities laws related to foreign companies, including potential market manipulation activities such as "pump and dump" schemes. The task force will also focus on "gatekeepers," especially auditors and underwriters who help these companies enter the U.S. capital markets. In addition, the task force will review potential securities law violations related to companies in foreign jurisdictions. SEC Chairman Paul Atkins stated, "We welcome companies from around the world to enter the U.S. capital markets, but we will not tolerate any bad actors—whether they are companies, intermediaries, or 'gatekeepers'—who attempt to use international borders to obstruct and evade protections for U.S. investors. The new Special Task Force will strengthen the SEC's investigative efforts and enable the SEC to use every available tool to combat transnational fraud."

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