VC investment in crypto firms hit $10B in the first quarter of 2022

While VC investments in crypto companies hit all-time highs, the US SEC has hired 20 new members to focus on crypto fraud oversight.

In 2021, venture capital firms invested $28 billion into the cryptoverse. In the first three months of 2022, they have already invested $10 billion in the sector, the largest quarterly amount to date. It is more than double the amount invested in the same quarter last year.

VC investments in crypto and blockchain-based funds have been seeing an exponential rise in recent years, according to data from investment analysis firm Pitchbook. The full-year totals for 2019, 2020 and 2021 were $3.7 billion, $5.5 billion and $28 billion.

This year's investment pattern has shown a divergence from the past in one particular way. No longer are investments made alongside growths in the Bitcoin and cryptocurrency marketplace. Despite the down year that Bitcoin and other large coins are having, investments have only increased.

The SEC hires 20 to combat crypto fraud

The US securities and exchange commission (SEC) has hired 20 individuals specifically to improve their crypto fraud oversight. The division is to be renamed the "Crypto Assets and Cyber Unit", and will have a total of 50 employees.

"By nearly doubling the size of this key unit, the SEC will be better equipped to police wrongdoing in the crypto markets while continuing to identify disclosure and controls issues with respect to cybersecurity," SEC Chair Gary Gensler said.

However, the SEC remains a house divided on this move. Commissioner Hester Pierce has criticised the announcement, asking why the SEC is trying to become an enforcement agency for crypto when it is designed to be a regulatory body.

Last week, it was reported that cyber enforcement employees in the UK's police force were being wooed away from their jobs to join crypto companies, with some individuals receiving pay packets twice or thrice more than their current salaries.

Edited by Anju Narayanan


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