The SEC has launched a crackdown on a fraudulent operation that allegedly siphoned off over $14 million from retail investors across the United States. This enforcement action, announced on December 22, targets three fake crypto trading platforms and four purported AI investment clubs.
The complaint identifies the companies involved as Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc., 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, creating the illusion of legitimate “crypto asset trading platforms” and investment pools that failed to execute actual trades.
Victims were lured through deceptive social media advertisements, many of which included deepfake videos impersonating well-known financial figures. Once attracted, potential investors were directed to join WhatsApp groups disguised as investment clubs, where fake “professors” and “assistants” shared AI-generated trading signals. These signals were used to entice users into opening accounts on the fraudulent platforms.
“Our complaint outlines a multi-faceted fraud scheme that drew victims in through social media advertising, fostered trust in group chats where fraudsters impersonated financial advisors, promised profits from AI-generated investment insights, and ultimately directed victims to deposit money into sham trading platforms,” stated Laura D”Allaird, Chief of the SEC”s Cyber and Emerging Technologies Unit.
The fraudulent clubs and platforms also promoted “Security Token Offerings” as low-risk, high-yield investments from reputable businesses. However, both the offerings and the companies behind them were completely fictitious, with the platforms fabricating trading activity to mislead users. When victims attempted to withdraw their funds, they were often met with demands for upfront payments such as “taxes,” “fees,” or “deposits,” sometimes under the pretense that the SEC or another regulatory agency was freezing their accounts.
The SEC”s action, filed in the District of Colorado, cites violations of the antifraud provisions under the Securities Act of 1933 and the Securities Exchange Act of 1934. The agency seeks permanent injunctions, disgorgement with interest from the involved companies, and civil penalties against all defendants.
In a related announcement, the SEC”s Office of Investor Education and Assistance highlighted the increasing risk of fraud involving AI tools. Scammers are now leveraging deepfake impersonations and scripted commentary in private group chats to create the facade of expert-led trading communities. This strategy typically leads victims to invest in fraudulent crypto platforms and so-called “AI node” schemes.
The SEC”s December 22 charges reflect a growing trend in social media-driven scams, where fraudulent operations funnel victims from platforms like WhatsApp, LinkedIn, and Instagram into fake exchanges. A separate alert from FINRA noted a staggering 300% rise in complaints regarding fraudulent investment groups that transition from social media to encrypted messaging applications.
The regulatory bodies are increasingly viewing these closed chat environments as prime locations for exploiting retail investors.
