The SEC has a new division that specializes in cryptocurrency fraud. It has renamed the unit Crypto Assets and Cyber Unit, and is on a hiring spree to bring more people with crypto expertise to its offices. The new division aims to increase consumer protection for the burgeoning cryptocurrency market.
Revolut
The crypto division of UK unicorn Revolut Ltd is expanding, with plans to double headcount in the sector over the next six months. The company is hiring in various roles, including financial crime prevention, legal experts and compliance professionals. The company has already hired 43 crypto professionals this year and currently has 230 open positions across its teams.
The recent turmoil has led to a rise in interest in cryptocurrency assets, with Revolut now having more customers trading crypto than at any point before July 2021. The company has more than 20 million registered customers and is the only digital bank listed on the UK Financial Conduct Authority’s temporary register of firms offering financial services to individuals. Revolut has been the subject of a number of investigations by regulators, including a crackdown on fraudulent activity.
Revolut launched Revolut Business in all 50 states, and recently submitted a draft application for a U.S. bank license, which would allow it to offer more services. Earlier this year, it also announced a strategic partnership with Equifax, one of the three major consumer credit reporting agencies.
While most Fintech firms are scaling back, Revolut is bucking the trend by expanding its crypto team. In recent weeks, several Fintech firms have reduced their headcount, citing the cryptocurrency bear market. Coinbase and Robinhood have both made similar cuts to their workforce.
Coinbase
San Francisco-based cryptocurrency exchange Coinbase has announced that it is hiring multiple positions in Japan. The move comes after the company announced plans to open services in Japan several years ago. Coinbase’s hiring spree includes hiring a CFO and a head of intellectual property, a position previously held by a former Cisco executive.
The move is a sign that the cryptocurrency industry is changing quickly. A few weeks ago, Coinbase’s staff had grown to more than 1,200 employees. The sudden drop in prices forced the company to ramp up staffing levels. But the staffing increase has led to a massive decline in the company’s shares, which have dropped to less than a third of their IPO price. In addition to hiring, the exchange also established a talent hub to help unemployed employees find new jobs.
As a result of its hiring spree, Coinbase has increased its staff by 50% in three months. The company has also implemented a “remote-first” policy that makes the process of hiring more efficient. Former Coinbase executive director Olaf-Carlson Wee left the company to lead Polychain Capital, a renowned cryptoasset hedge fund. Another Coinbase executive, Nick Tomaino, left to work at Runa Capital and is now investing at 1confirmation cryptoasset investment fund. Charlie Lee, the creator of Litecoin, was a director of engineering at Coinbase until June 2017.
One of the most recent examples of cryptocurrency fraud is a case that unfolded on the Coinbase app. It’s a scam that involves scammers posing as government agents and exploiting consumer enthusiasm. However, the scam is not the only one affecting the cryptocurrency market. There have also been cases of mayors taking bitcoin paychecks. The New York City Mayor Eric Adams deposited a portion of his salary in his Coinbase account, and Miami Mayor Francis Suarez did the same. In both cases, the scam cost the company $6.3 million in losses.
SEC
The Securities and Exchange Commission (SEC) has announced a hiring spree to counter the growing crypto fraud threat. The SEC’s newly created Crypto Assets and Cyber Unit will hire 20 additional staff members to protect the interests of investors in the emerging crypto markets. The new hires will focus on cybersecurity and securities law violations in the crypto asset market.
The SEC is launching an investigation into alleged cryptocurrency fraud and is hiring crypto experts to help investigate the sector. These positions include fraud analysts, investigation attorneys, supervisors, and trial attorneys. A list of available positions can be found here. The SEC is continuing to look for more ways to protect investors and prevent future fraud.
The SEC has also charged several people with violating the federal securities laws. The individuals include Cheri Beth Bowen, Ronald R. Deering, Samuel D. Ellis, Mark F. Hamlin, Alisha R. Shepperd, and Sarah L. Theissen. Some of the individuals involved in the investigation have voluntarily settled with the SEC.
