SEC Accuses Multiple Crypto Platforms and Investment Clubs of $14 Million Fraud

USA: SEC Charges Three Purported Crypto Asset Trading Platforms and Four Investment Clubs in $14 Million Fraud Scheme

More than $14 million was allegedly siphoned from U.S. retail investors through a coordinated scheme involving three purported crypto‑asset trading platforms and four investment clubs, according to a complaint filed by the U.S. Securities and Exchange Commission.

Scheme Overview

The complaint names Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc. as the fake trading platforms, and AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation as the investment clubs that promoted the fraud. From at least January 2024 to January 2025, the clubs used WhatsApp groups and paid advertisements on social‑media sites to recruit investors, promising AI‑generated investment tips and purported government‑licensed trading services.

Victims were persuaded to open accounts on the three platforms, which falsely claimed to offer legitimate Security Token Offerings. The complaint alleges that no actual trading occurred, the token offerings were fictitious, and the platforms misappropriated the deposited funds before routing them through a network of overseas bank accounts and crypto wallets.

Regulatory Response

According to the SEC, the defendants violated the anti‑fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The agency is seeking permanent injunctions, civil penalties, and disgorgement with prejudgment interest against the three platform operators.

“This matter highlights an all‑too‑common form of investment scam that is being used to target U.S. retail investors with devastating consequences,” said Laura D’Allaird, Chief of the Cyber and Emerging Technologies Unit at the SEC. “Fraud is fraud, and we will vigorously pursue securities fraud that harms retail investors.”

The SEC’s Office of Investor Education and Assistance has issued an investor alert warning that fraudsters may exploit popular social‑media platforms and messaging apps to lure investors. The alert advises the public to verify the credentials of anyone offering or selling an investment and to consult Investor.gov for background checks.

Legal experts note that the case underscores ongoing regulatory scrutiny of crypto‑related offerings and the importance of robust investor education in preventing similar schemes.

This report is based on information from SEC, licensed under Public Domain (U.S. Government Work). Source: Official U.S. Government release.