SEC accuses $14 million cryptocurrency fraud scheme promoted on social media

Source: PortaldoBitcoin Original Title: SEC Accuses $14 Million Cryptocurrency Fraud Scheme Promoted on Social Media Original Link: The U.S. Securities and Exchange Commission (SEC) has charged seven entities with operating a cryptocurrency investment fraud scheme that caused over $14 million in losses to American investors, according to a complaint filed Monday in the District Court of Colorado.

According to the regulator, the group set up a sophisticated online scam primarily targeting social media users and messaging app users, exploiting victims’ trust to divert funds over approximately a year.

The lawsuit names three alleged crypto trading platforms — Morocoin Tech, Berge Blockchain Technology, and Cirkor — as defendants, along with four investment clubs identified as AI Wealth, Lane Wealth, AI Investment Education Foundation, and Zenith Asset Tech Foundation.

According to the SEC, all these entities were part of the same scheme, classified as a “trust scam in investments,” which used social media ads to attract retail investors.

The complaint states that the scheme operated between January 2024 and January 2025. The ads directed interested parties to supposed investment clubs that mainly operated in WhatsApp groups.

How the scam worked

In these environments, the scammers posed as experienced financial market professionals and engaged in frequent interactions in chat rooms to build credibility with victims. To reinforce the appearance of legitimacy, the groups shared what the SEC described as investment tips supposedly generated by artificial intelligence, creating the illusion of consistent returns.

After gaining the victims’ trust, the clubs instructed investors to open and fund accounts on the Morocoin, Berge, and Cirkor platforms. The regulator states that these platforms presented themselves as legitimate crypto exchanges, claiming to hold government licenses, when in fact they were entirely fictitious and did not conduct any real trading operations.

The fraud was further deepened with the offering of supposed security tokens, which, according to the SEC, never existed, nor did the issuing companies.

When investors attempted to withdraw their funds, the scheme operators began demanding additional advance fees, further increasing losses. In total, the SEC claims that at least $14 million was diverted, with the funds later transferred abroad through a network of bank accounts and cryptocurrency wallets.

In a statement, Laura D’Allaird, head of the SEC’s Cybersecurity and Emerging Technologies unit, said the case illustrates one of the most common methods of fraud currently used to target retail investors in the U.S., with severe financial impacts on victims.

Alongside the lawsuit, the SEC issued a public warning, emphasizing that scammers often use social media and messaging groups to promote fraudulent schemes and advising investors to verify the legitimacy of any offer through official verification channels.

“Be wary of any chat group where you receive investment advice from someone you don’t know,” the agency warned, adding that this is often the starting point for many financial scams involving cryptocurrencies and other supposedly innovative investment opportunities.