Key Takeaways
- The SEC announced charges against seven entities involved in alleged crypto-related investment fraud, including three fake trading platforms and four investment clubs.
- The groups, operating through online messaging applications, used AI-generated tips and false government licensing claims to lure investors.
The US SEC has charged crypto trading platforms Morocoin Tech, Berge Blockchain Technology, and Cirkor, as well as four related investment clubs, accusing them of running a coordinated crypto investment fraud that diverted at least $14 million from retail investors.
According to the complaint, the investment clubs, including AI Wealth, Lane Wealth, AI Investment Education Foundation, and Zenith Asset Tech Foundation, utilized WhatsApp and social media platforms to establish investor trust and promote purported AI-generated trading strategies.
Investors were allegedly persuaded to open accounts on associated crypto trading platforms that claimed to be licensed and legitimate. These platforms promoted fictitious Security Token Offerings and nonexistent issuing companies, while preventing legitimate withdrawals and imposing fraudulent advance fees.
The SEC is seeking injunctions, civil penalties, and disgorgement against the defendants.