SEC Files Charges Over Alleged $14M Crypto Investment Scam Targeting Retail Investors - Coinedict

The U.S. Securities and Exchange Commission has filed civil charges against seven entities accused of running a large-scale crypto investment scam that allegedly defrauded retail investors of more than $14 million through fake trading platforms and deceptive online investment clubs.

According to a complaint lodged Monday in the U.S. District Court of Colorado, the SEC claims the defendants orchestrated a year-long “investment confidence scam” that operated between January 2024 and January 2025, relying heavily on social media advertising, messaging apps, and fabricated AI-driven trading signals to lure victims.

How the Alleged Scam Worked

The SEC says the scheme began with targeted advertisements on popular social media platforms, inviting users to join exclusive “investment clubs.” Victims were then funneled into WhatsApp group chats, where fraudsters posed as professional traders, investment educators, or AI-driven market experts.

Inside these group chats, participants were shown what the SEC described as AI-generated investment tips and performance screenshots, designed to simulate consistent profits and build credibility. These tactics allegedly helped create trust and encouraged victims to invest increasingly larger sums.

Once confidence was established, investors were directed to open and fund accounts on three supposed crypto trading platforms:

• Morocoin Tech Corp.
• Berge Blockchain Technology Co., Ltd.
• Cirkor Inc.

According to the SEC, none of these platforms conducted real trading activity. Instead, they were entirely fictitious websites created solely to receive and misappropriate investor funds.

Fake Licensing, Fake Tokens, Real Losses

The complaint alleges that the platforms falsely claimed to be government-licensed and regulated crypto trading services. To deepen the deception, the defendants allegedly promoted fake security token offerings, tied to nonexistent companies and projects.

As investors attempted to withdraw funds or profits, the scheme escalated. Defendants reportedly demanded additional advance fees, taxes, or “liquidity charges”, a common red flag in crypto fraud. Victims who paid these fees still could not access their money, compounding losses.

The SEC claims that at least $14 million was misappropriated from U.S. investors, with funds routed overseas through a network of bank accounts and crypto wallets, making recovery more difficult.

Entities Named in the SEC Complaint

The seven defendants named in the filing include:

• Morocoin Tech Corp.
• Berge Blockchain Technology Co., Ltd.
• Cirkor Inc.
• AI Wealth Inc.
• Lane Wealth Inc.
• AI Investment Education Foundation Ltd.
• Zenith Asset Tech Foundation

The SEC alleges these entities operated in coordination, presenting themselves as legitimate investment educators, foundations, and trading platforms to give the scheme an appearance of credibility.

SEC Warning: Social Media and Group Chats Are Prime Targets

Laura D’Allaird, Chief of the SEC’s Cyber and Emerging Technologies Unit, said the case highlights a growing and dangerous trend in modern investment fraud.

She warned that scammers increasingly exploit social media algorithms, private messaging apps, and AI-themed marketing to reach retail investors at scale, often with devastating financial consequences.

Alongside the charges, the SEC issued a fresh investor alert, urging the public to be cautious of:

• Investment advice offered in group chats
• Claims of guaranteed or consistent returns
• Platforms that require extra fees to unlock withdrawals
• “AI-powered” trading strategies that cannot be independently verified

The agency advised investors to verify the background and registration status of anyone offering investments using official resources such as Investor.gov, and to be skeptical of unsolicited opportunities promoted through WhatsApp, Telegram, or social media.