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SEC Files Charges Against $14M Crypto Investment Scam

The U.S. Securities and Exchange Commission has charged three purported crypto asset trading platforms and four investment clubs for allegedly orchestrating an online investment #scam that defrauded more than $14 million from retail investors.

The regulator #filed a complaint Monday in the U.S. District Court of Colorado accusing the seven entities of running what the SEC described as an investment confidence scam relying heavily on social media and messaging apps. The entities named include Morocoin Tech Corp., Berge Blockchain Technology Co., Ltd., Cirkor Inc., AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd. and Zenith Asset Tech Foundation.

Laura D'Allaird, chief of the cyber and emerging technologies unit at the SEC, said the matter highlights an all-too-common form of #investment scam being used to target U.S. retail investors with devastating consequences. The alleged scheme ran from January 2024 through January 2025.

The operation targeted victims through advertisements on popular social media platforms inviting users to join investment clubs operating primarily on WhatsApp, where fraudsters posed as financial professionals. Group chats were used to cultivate trust among participants.

Once in the chatrooms, investors received what the #SEC described as AI-generated investment tips intended to build credibility and simulate consistent profits. The clubs then allegedly directed victims to open and fund accounts on Morocoin, Berge, and Cirkor, which the SEC said were entirely fake #crypto asset trading platforms.

The platforms claimed to offer legitimate, government-licensed trading services, but no actual trading took place according to the regulator. The scheme escalated through promotion of fake security token offerings, with both the offerings and issuing companies being fictitious, according to the SEC.