The pitfalls of encryption investment are truly one after another. The US SEC recently uncovered a large-scale fraud case involving three fake trading platforms and four investment firms working together, directly scamming retail investors out of 14 million dollars.

This scam has been operating since the beginning of 2024. The fraudsters first promoted some exclusive trading secrets on social media, claiming to have risk-free strategies, and then pulled victims into WhatsApp groups for further brainwashing. Once people showed interest, they guided investors to register on platforms like Morocoin and Berge.

But these platforms are completely fake. The balance and transaction records you see in your account? They're all just numbers made in post-production. When investors want to withdraw their money, excuses come up—under the guise of taxes, processing fees, and all sorts of inexplicable charges; they just drag it out and refuse to let you withdraw. It's a typical case of a scam.

The SEC has made its stance very clear: no matter how it is packaged, fraud is fraud. Now, these masterminds have been taken to court, and what awaits them are civil penalties and a lifetime ban from the industry.

To be honest, such cases are actually not uncommon in the encryption field. Some people rely on concocting various gimmicks to fleece retail investors, making it hard to defend against. Whether the actions of the regulatory authorities will have a deterrent effect remains to be seen in the follow-up results, but at least it has sent a signal to the market: illegal scams cannot escape.