The US Securities and Exchange Commission has charged several alleged crypto trading platforms and investment clubs over a large-scale retail fraud scheme.
The defendants include 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.
Regulators allege the entities misappropriated more than $14 million from retail investors through a coordinated confidence scam.
The SEC said the operation relied heavily on social media advertisements to attract victims.
According to the complaint, the scheme ran from at least January 2024 to January 2025.
Investors were allegedly recruited into private messaging groups, including WhatsApp chats.
Fraudsters posing as financial professionals used the groups to build credibility and trust.
Victims were promised profits from artificial intelligence-driven investment strategies.
The SEC alleges investors were directed to open accounts on fake crypto asset trading platforms.