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.
Morocoin, Berge and Cirkor are accused of falsely claiming to hold government licences.
The platforms allegedly offered so-called Security Token Offerings tied to legitimate businesses.
Regulators said no real trading activity ever took place on the platforms.
The complaint states that the token offerings and issuing companies did not exist.
When investors attempted to withdraw funds, they were allegedly required to pay advance fees.
The SEC said these demands were designed to extract additional money from victims.
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 social media, fake expertise and fabricated platforms were used to steal investor funds.
The SEC alleges the stolen money was funnelled overseas through bank accounts and crypto wallets.
The case was filed in the United States District Court for the District of Colorado.
The SEC is seeking injunctions, civil penalties and disgorgement with interest.