SEC Uncovers Elaborate Crypto Fraud Scheme
The U.S. Securities and Exchange Commission (SEC) has filed charges against multiple entities involved in a sophisticated cryptocurrency scam that defrauded retail investors of over $14 million. The accused companies allegedly lured victims through social media and messaging platforms, promoting fictitious AI-generated investment tips to gain their trust.
The companies named in the complaint include crypto asset trading platforms Morocoin Tech Corp., Berge Blockchain Technology Co., Ltd., and Cirkor Inc.. In addition, investment clubs such as AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation (AIIEF) Ltd., and Zenith Asset Tech Foundation were also implicated in the fraudulent operation.
How the Scam Operated
According to the SEC, the scam was a multi-layered fraud that utilized social media advertising to attract potential investors. Once interested, victims were added to WhatsApp group chats where individuals posed as financial experts, often using titles like “professor” or “assistant.” These personas provided supposed AI-generated investment advice to build credibility.
Victims were then persuaded to invest through fake cryptocurrency trading platforms, which claimed to be government-licensed. These platforms included:
- Morocoin Tech Corp. – Launched in December 2023, website: h5.morocoin[.]top (currently delinquent)
- Berge Blockchain Technology Co., Ltd. – Started in June 2022, website: www.bergev[.]org (currently delinquent)
- Cirkor Inc. – Created in May 2024, website: www.cirkortrading[.]com (dissolved in October 2025)
Each investment club operated on WhatsApp, where the so-called professors shared market insights and stock commentary while assistants handled investor communication. These groups falsely claimed their investment suggestions were derived from advanced AI systems.
Fake Tokens and Fictitious Companies
The fraudulent platforms also promoted “Security Token Offerings” (STOs) for crypto assets that allegedly originated from legitimate companies. The SEC found that these offerings were completely fabricated. For example, AI Wealth and Lane Wealth promoted a token called SCT from a non-existent company named SatCommTech, while AIIEF and Zenith pushed a token called HMB from a fictitious firm named HumanBlock.
Victims were encouraged to fund accounts on the fake platforms, only to face further deception. When attempting to withdraw funds, users were instructed to pay additional “release” fees. Ultimately, the platforms severed all communication, locking users out of their accounts permanently.
Overseas Money Laundering and Investor Losses
The SEC’s investigation revealed that the defrauded funds were funneled through a web of international bank accounts and cryptocurrency wallets. Some of these were linked to individuals in China and Myanmar. The total stolen included approximately $7.4 million in cryptocurrency and $6.6 million in fiat currency.
One investor reportedly transferred over $1 million to accounts in China and Hong Kong, while another wired $1.4 million to a bank in Indonesia. Online forums like Reddit have documented numerous complaints from users who lost their savings, with some groups using aliases like “Richard Dill” and “Daisy Akemi.”
Legal Action and Regulatory Response
The SEC has charged the involved entities with violating anti-fraud provisions under the Securities Act of 1933 and the Securities Exchange Act of 1934. The Commission is seeking permanent injunctions, civil penalties, and prejudgment interest repayment.
Laura D’Allaird, Chief of the SEC’s Cyber and Emerging Technologies Unit, emphasized the danger posed by such scams, stating, “This matter highlights an all-too-common form of investment scam that is being used to target U.S. retail investors with devastating consequences. Fraud is fraud, and we will vigorously pursue securities fraud that harms retail investors.”
The SEC’s action serves as a stark warning about the growing intersection of cryptocurrency, artificial intelligence, and financial fraud, especially at a time when AI-themed investments are gaining popularity among retail investors.
Public Awareness and Caution
As this case demonstrates, scammers are increasingly leveraging technology themes like AI to deceive investors. Authorities urge individuals to thoroughly research any investment opportunity, verify the legitimacy of trading platforms, and be wary of unsolicited social media promotions or messaging app invitations.
Investors should also be cautious of platforms that demand advance fees or promise unusually high returns based on “AI insights.” Legitimate financial advice will never require upfront payments to access one’s own funds.
This article is inspired by content from Original Source. It has been rephrased for originality. Images are credited to the original source.