SEC Charges Seven Entities in $14M Crypto Investment Scam
The U.S. Securities and Exchange Commission (SEC) has taken action against three purported crypto trading platforms and four investment clubs accused of orchestrating a large-scale online fraud that defrauded investors of over $14 million.
Alleged Investment Confidence Scam
In a complaint filed Monday in the U.S. District Court of Colorado, the SEC described the operation as an “investment confidence scam” that leveraged social media and messaging apps to lure victims. The entities named include Morocoin Tech Corp., Berge Blockchain Technology Co., Ltd., Cirkor Inc., AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation.
Laura D’Allaird, head of the SEC’s cyber and emerging technologies unit, stated, “This matter highlights an all-too-common form of investment scam that targets U.S. retail investors with devastating consequences.”
How the Scam Operated
According to the SEC, the scheme ran from January 2024 to January 2025, targeting investors through ads on popular social media platforms. Users were invited to join so-called investment clubs on WhatsApp, where fraudsters posed as financial professionals to build trust.
Inside these group chats, victims received AI-generated investment tips simulating consistent profits. They were then directed to open accounts on Morocoin, Berge, and Cirkor, platforms that allegedly claimed to be legitimate but did not execute any real trading.
The scam also involved fake security token offerings, with both the offerings and issuing companies entirely fictitious. Victims trying to withdraw funds were asked for additional advance fees, worsening their losses. The SEC reports that the stolen funds were moved overseas via a network of bank accounts and crypto wallets.
Alongside the complaint, the SEC issued a warning urging investors to be cautious: verify anyone offering investments, and be wary of group chats where advice comes from unknown sources. These chats are often the starting point for crypto-related investment scams.
This case underscores the growing sophistication of online crypto fraud and the risks of trusting unverified platforms and investment clubs.
