SEC Accuses Operators of Multimillion-Dollar Crypto Fraud Leveraging Fake AI Investment Tips
The U.S. Securities and Exchange Commission has filed charges against multiple companies and entities it says orchestrated a coordinated cryptocurrency fraud that siphoned more than $14 million from retail investors. The SEC’s complaint describes a multi-step scheme that used social media advertising, messaging‑app investment clubs, and fabricated crypto trading platforms to entice and defraud investors.
According to the complaint, the SEC charged three crypto asset trading platforms—Morocoin Tech Corp., Berge Blockchain Technology Co., Ltd., and Cirkor Inc.—and four investment clubs—AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation (AIIEF) Ltd., and Zenith Asset Tech Foundation—in connection with the operation.
The agency says the fraud began with social media ads that funneled retail investors into private group chats on messaging apps such as WhatsApp. Within those groups, individuals posing as financial professionals used scripted roles—a "professor" providing macroeconomic commentary and trade recommendations and an "assistant" handling routine interactions—to build credibility and trust.
Group members were reportedly told that the investment recommendations were generated by artificial intelligence, and those purported AI “signals” were used to persuade investors to open accounts and deposit funds on the platforms identified in the complaint. The SEC alleges the platforms falsely claimed to have government licenses and then offered purported Security Token Offerings (STOs) issued by seemingly legitimate businesses.
In reality, the complaint alleges, no trading took place on the platforms and the STOs and issuing companies did not exist. The SEC identified two specific token offerings promoted in the WhatsApp groups: an STO for a cryptocurrency asset called SCT, said to be issued by SatCommTech, which the complaint identifies as fictitious; and an STO for a token called HMB, advertised as issued by HumanBlock, which the SEC also identifies as fictitious.
The SEC’s filing provides operational timeframes for the investment clubs. AI Wealth and Lane Wealth are said to have operated WhatsApp groups from at least January 2024 through June 2024. AIIEF and Zenith are described as having run their groups from at least July 2024 through January 2025. The complaint also alleges that an unnamed individual based in Beijing paid for the registrations of AI Wealth, Lane Wealth, and Zenith.
The SEC included details on the platforms alleged to have been used to collect investor funds. Morocoin Tech Corp. is described as established around December 2023 and accessible at h5.morocoin[.]top; Berge Blockchain Technology Co., Ltd. as established around June 2022 and accessible at www.bergev[.]org; and Cirkor Inc. as established around May 2024 and accessible at www.cirkortrading[.]com. The complaint notes Morocoin and Berge are currently delinquent, and that Cirkor was administratively dissolved in October 2025.
When investors sought to withdraw funds, the complaint alleges, the operators demanded advance fees to release alleged account balances and ultimately cut off access to the platforms, effecting a second round of fraud against victims. The SEC says the operation moved at least $14 million in proceeds overseas through a network of bank accounts and crypto wallets, in some instances through accounts held by Chinese or Burmese individuals located in Southeast Asia.
The SEC’s accounting of the misappropriated funds separates cryptocurrency and fiat proceeds: at least $7.4 million in cryptocurrency assets and $6.6 million in fiat currency. The filing cites specific wire transfers as examples—one Morocoin investor allegedly made seven separate wires totaling more than $1 million to accounts in China and Hong Kong, and a Cirkor investor allegedly wired over $1.4 million to a bank in Indonesia.
Public reports on social platforms are referenced in the complaint, with multiple Reddit posts detailing individuals’ losses and specific allegations about group conduct. The SEC highlights that AIIEF was reported for using names such as "Richard Dill" and "Daisy Akemi" to represent professors and assistants in its marketing and group communications.
The defendants have been charged with violating the anti‑fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC is seeking permanent injunctions, civil penalties, and repayment of the funds with prejudgment interest.
Laura D'Allaird, Chief of the SEC’s Cyber and Emerging Technologies Unit, is quoted in the complaint: "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 filing underscores recurring risks for retail investors who encounter online solicitations that claim AI-driven strategies or guaranteed returns. The agency’s allegations emphasize the use of fabricated corporate identities, false licensing claims, and sham token offerings as elements of an evolving set of tactics used to perpetrate investment fraud.
Key Topics
Sec Cryptocurrency Fraud Case, Morocoin Tech Corp, Berge Blockchain Technology Co, Cirkor Inc, Whatsapp Investment Clubs, Social Media Crypto Advertising, Security Token Offerings (stos), Satcommtech Sct Token, Humanblock Hmb Token, Ai-driven Investment Signals, Fabricated Corporate Identities, International Wire Transfers In Scams, Advance Fee Withdrawal Scam, Securities Fraud Charges, Retail Investor Protection