The U.S. Securities and Exchange Commission (SEC) has charged three purported cryptocurrency trading platforms—Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc.—along with four investment clubs—AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation—with defrauding retail investors of over $14 million. The alleged scheme, which operated from January 2024 through January 2025, involved luring investors via social media advertisements and WhatsApp groups, where fraudsters posed as financial professionals offering artificial intelligence-generated investment tips. Investors were then directed to open accounts on the fake trading platforms, which falsely claimed to be licensed. In reality, no trading occurred, and the platforms were entirely fictitious. When investors attempted to withdraw funds, the defendants imposed additional hurdles, including demands for advance fees, further draining victims’ accounts. The misappropriated funds were routed overseas through a network of bank accounts and cryptocurrency wallets. Laura D’Allaird, chief of the SEC’s Cyber and Emerging Technologies Unit, stated that this case highlights a common form of investment scam targeting U.S. retail investors with devastating consequences. The SEC has charged the defendants with violating anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, seeking permanent injunctions, civil penalties, and disgorgement with interest. ([cryptonews.com](https://cryptonews.com/news/sec-charges-fake-crypto-platforms-ai-investment-clubs-in-14m-scam/?utm_source=openai))
This case underscores the growing trend of fraudsters exploiting the popularity of cryptocurrencies and artificial intelligence to deceive investors. The SEC’s actions serve as a reminder for investors to exercise caution and conduct thorough due diligence before engaging with investment platforms, especially those promoted through social media channels. ([sec.gov](https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26111?utm_source=openai))