- U.S. Securities and Exchange Commission filed charges accusing crypto platforms and messaging-based investment clubs of a scheme that stole more than $14 million.
- Scammers used social media ads and WhatsApp groups, posing as experts and claiming AI-generated trading signals to build trust.
- Fake trading platforms offered purported Security Token Offerings (STOs) from nonexistent companies and then blocked withdrawals.
- At least $7.4 million in crypto and $6.6 million in fiat were moved overseas; investors wired six- and seven-figure sums to accounts in Asia.
U.S. Securities and Exchange Commission filed charges on alleged roles by multiple companies in a crypto fraud that took more than $14 million from retail investors, according to the press release linked here. The complaint names trading platforms and investment clubs that operated group chats and promoted AI-based tips to lure investors.
The complaint identifies the platforms Morocoin Tech Corp., Berge Blockchain Technology Co., Ltd., and Cirkor Inc., and the clubs AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation (AIIEF) Ltd., and Zenith Asset Tech Foundation. An individual in Beijing allegedly paid to register several of the clubs.
Fraudsters used social media ads and WhatsApp groups run by a “professor” and an “assistant” to give updates and send trade tips, falsely claiming the tips were based on AI signals. “The clubs gained investors’ confidence with supposedly AI-generated investment tips before luring investors to open and fund accounts on purported crypto asset trading platforms Morocoin, Berge, and Cirkor, which falsely claimed to have government licenses, as alleged,” the complaint states here.
These platforms offered Security Token Offerings (STOs): a sale of digital tokens that represent investment contracts or securities. “The investment clubs and platforms then allegedly offered ‘Security Token Offerings’ that were purportedly issued by legitimate businesses. In reality, no trading took place on the trading platforms, which were fake, and the Security Token Offerings and their purported issuing companies did not exist.”
The clubs promoted STOs for tokens called SCT and HMB, said to be issued by SatCommTech and HumanBlock, both identified as fictitious. When investors tried to withdraw funds, platforms demanded advance fees and then cut access.
At least $14 million was misappropriated and moved through bank accounts and crypto wallets overseas, with about $7.4 million in crypto and $6.6 million in fiat. In one case an investor wired over $1 million in several transfers to accounts in China and Hong Kong; in another an investor wired more than $1.4 million to Indonesia.
There have been multiple reports on Reddit from individuals who said they lost money, including posts linked here, here, here, here, and here.
The SEC charged the defendants with violating anti‑fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934 and is seeking permanent injunctions, civil penalties, and repayment with prejudgment interest. “This matter highlights an all-too-common form of investment scam that is being used to target U.S. retail investors with devastating consequences,” said Laura D’Allaird in the SEC statement linked here.
Related images and linked visuals from the original report are available here, here, and here.
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