SEC accuses 7 entities of implementing a $14 million cryptocurrency scam plan

Source: PortaldoBitcoin Original Title: SEC Accuses $14 Million Cryptocurrency Fraud Scheme Promoted on Social Media Original Link: https://portaldobitcoin.uol.com.br/sec-acusa-esquema-de-fraude-com-criptomoedas-de-us-14-milhoes-promovido-em-redes-sociais/ The U.S. Securities and Exchange Commission (SEC) has charged seven entities with operating a cryptocurrency investment fraud scheme resulting in losses of over $14 million for American investors. According to a lawsuit filed on Monday in a Colorado district court, the group established a complex online scam primarily targeting social media and messaging app users, leveraging victims’ trust to transfer funds over approximately one year.

Involved Entities

The lawsuit alleges three fake cryptocurrency trading platforms—Morocoin Tech, Berge Blockchain Technology, and Cirkor—as well as four investment clubs: AI Wealth, Lane Wealth, AI Investment Education Foundation, and Zenith Asset Tech Foundation.

The SEC states that all these entities are part of the same scheme, categorized as “investment confidence fraud,” attracting retail investors through social media advertisements.

How the Scam Operates

The scheme operated from January 2024 to January 2025. Advertisements directed interested individuals to fake investment clubs, which mainly operated within WhatsApp groups.

Within these environments, scammers impersonated experienced financial market professionals and built credibility with victims through frequent interactions in chat rooms. To enhance legitimacy, these groups shared investment advice purportedly generated by artificial intelligence, creating an illusion of consistent returns.

After gaining the trust of participants, the clubs guided investors to open and fund accounts on the Morocoin, Berge, and Cirkor platforms. According to the SEC, these platforms claimed to be legitimate crypto asset brokers, even asserting they held government licenses, but in reality, they were entirely fictitious with no actual trading operations.

The fraud was deepened by offering purported security tokens, which, according to the SEC, never existed, and the issuing companies were nonexistent.

When investors attempted to withdraw funds, the scheme’s operators began demanding additional upfront payments, further increasing losses. The SEC claims at least $14 million was misappropriated, with these funds subsequently transferred abroad via bank accounts and crypto wallets.

SEC Warning

Laura D’Allaird, head of the SEC’s Cybersecurity and Emerging Technologies Division, stated in a release that this case illustrates one of the most common fraud methods currently used against U.S. retail investors, causing serious financial harm to victims.

Alongside the lawsuit, the SEC issued a public warning emphasizing that scammers frequently use social media and messaging groups to promote fraudulent schemes, advising investors to verify the legitimacy of any proposals on Investor.gov.

The SEC warns: “Be cautious of investment advice from strangers in chat groups,” adding that this is often the starting point for many financial scams involving cryptocurrencies and other purportedly innovative investment opportunities.