The US Securities and Exchange Commission has filed charges against three purported crypto asset trading platforms and four related investment clubs for allegedly defrauding retail investors of more than $14 million through a coordinated online 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 operation targeted everyday investors through paid advertisements on popular social media platforms that promoted high-yield crypto investment opportunities.
According to the complaint, the scheme ran from at least January 2024 to January 2025 and relied heavily on messaging apps such as WhatsApp to build trust with potential victims.
Investors were reportedly added to group chats where fraudsters posed as experienced financial professionals and shared what were described as AI-generated trading tips.
These tips were used to create a false sense of credibility and consistent profitability before investors were encouraged to deposit funds.
Victims were then directed to open accounts on the alleged crypto trading platforms, which authorities say were entirely fake and carried no real trading activity.
The platforms reportedly claimed to hold government licences and offered access to so-called Security Token Offerings said to be issued by legitimate companies.
In reality, regulators allege that neither the token offerings nor the issuing businesses existed, and no genuine investments were ever made.
When investors attempted to withdraw funds, they were allegedly told to pay additional advance fees, further increasing their losses.
This matter highlights an all-too-common form of investment scam that is being used to target U.S. retail investors with devastating consequences.
Laura D’Allaird said.
She added that the scheme relied on social media advertising, fabricated expertise, and fake trading platforms to misappropriate investor funds.
The SEC claims that at least $14 million was taken from US-based retail investors and later transferred overseas through bank accounts and crypto wallets.
The complaint was filed in the United States District Court for the District of Colorado, citing violations of federal securities laws.
The regulator is seeking permanent injunctions, civil penalties, and the return of funds with interest from the accused entities.
Separately, the SEC has issued an investor alert warning the public not to rely solely on information shared in group chats when making investment decisions.
Investors have also been urged to use official tools such as Investor.gov to verify the background of anyone offering investment products.