Fraudulent Platforms and Investment Clubs Allegedly Defrauded Retail Investors
The U.S. Securities and Exchange Commission (SEC) has filed charges against three purported crypto trading platforms and four investment clubs accused ofdefrauding retail investors of over $14 million. The case underscores the growing risks of social media-based investment scams in the digital asset sector.
According to the SEC complaint filed in U.S. District Court, Colorado, the defendants—Morocoin Tech Corp., Berge Blockchain Technology Co., Ciirkor Inc., AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation—allegedly orchestrated an “investment confidence scam” from January 2024 through January 2025.
The scheme relied heavily on social media advertisements and WhatsApp group chats to target victims. Fraudsters posed as financial professionals, providing AI-generated investment tips to create the illusion of consistent returns. Victims were then directed to open accounts on fake trading platforms, which claimed to be licensed but conducted no actual trading.
The scam escalated with the promotion of fictitious security token offerings, and victims who attempted withdrawals were asked to pay additional fees, compounding their losses. Funds were allegedly misappropriated and routed overseas through crypto wallets and bank accounts.
The SEC warned investors to remain vigilant when receiving investment advice from unknown sources online. The agency highlighted that social media and messaging apps are commonly exploited for fraudulent schemes and urged verification through official resources such as Investor.gov.
This case highlights the continued importance of due diligence in cryptocurrency investing, particularly when offers are made via informal digital channels, and reinforces the SEC’s commitment to policing emerging crypto-related scams.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.