The SEC has taken decisive action against multiple organizations accused of orchestrating a fraud scheme that extracted over $14 million from U.S. retail investors. On December 22, the regulatory body announced charges against three cryptocurrency trading platforms and four purported AI investment clubs, highlighting a concerning trend in digital asset fraud.
The complaint identifies Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc. as the main trading platforms involved, alongside AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation. According to the SEC, these entities operated from January 2024 to January 2025, promoting fake “crypto asset trading platforms” and club-style investment pools that never executed actual trades.
Victims were allegedly lured through targeted advertisements on social media platforms and were subsequently guided into private WhatsApp groups branded as investment clubs. In these groups, self-identified “professors” and “assistants” disseminated AI-generated trading signals, convincing participants to open accounts on the fraudulent platforms.
Laura D”Allaird, Chief of the SEC”s Cyber and Emerging Technologies Unit, emphasized the multi-layered nature of the fraud, stating, “Our complaint alleges a multi-step fraud that attracted victims with ads on social media, built victims” trust in group chats where fraudsters posed as financial professionals and promised profits from AI-generated investment tips, then convinced victims to put their money into fake crypto asset trading platforms where it was misappropriated.”
The investigation revealed that these investment clubs promoted “Security Token Offerings” as high-yield, low-risk opportunities from legitimate businesses. In reality, both the offerings and the companies behind them were fabricated, with no real trading activity taking place. When victims attempted to withdraw their funds, they were reportedly met with demands for upfront payments labeled as “taxes,” “fees,” or “deposits.”
In a related advisory, the SEC”s Office of Investor Education and Assistance noted an alarming rise in fraud schemes using AI tools. These scams often employ deepfake technology to impersonate financial experts, coupled with scripted commentary, to create the illusion of legitimate trading communities. The SEC linked these charges to a growing pattern of fraud that begins on social media and transitions to encrypted messaging applications.
Moreover, the Financial Industry Regulatory Authority (FINRA) reported a staggering 300% increase in complaints regarding fraudulent investment groups originating on social media platforms and migrating to encrypted chats like WhatsApp. Regulators are now viewing these closed chat environments as key venues for retail investor exploitation.
The SEC”s enforcement action was filed in the District of Colorado, citing violations of the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The Commission seeks permanent injunctions, disgorgement of funds with interest from the involved entities, and civil penalties against all defendants.
