SEC exposes cross-platform scam case: $14 million mafia, Bitcoin regulatory documents surge by 8,000 times

DAOplomacy · 2025-12-26T13:00:13+00:00

The U.S. Securities and Exchange Commission exposed a scam involving three cryptocurrency trading platforms and four investment clubs colluding to defraud retail investors of approximately $14 million. The scammers promoted fake security token products through unlicensed platforms, exploiting investors' unfamiliarity with STOs and greed for profit. The SEC is gradually adopting a more detailed regulatory approach, indicating that compliant projects will have more opportunities, and investors need to be more cautious when choosing licensed platforms.

DAOplomacy

2025-12-26 13:00:13

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【Crypto World】The U.S. Securities and Exchange Commission (SEC) recently exposed a large-scale scam—three cryptocurrency trading platforms and four so-called investment clubs colluded to defraud approximately $14 million from American retail investors. The entire scheme lasted from January 2024 to January 2025, employing quite covert methods.

The scam’s approach is actually not complicated: illegal actors set up unlicensed trading platforms and fake investment clubs, then sell securities token offering (STO) products that do not exist to investors. It sounds suspicious, but some people fell for it. Why do these types of scams still succeed? Essentially, it’s because they exploit retail investors’ unfamiliarity with STOs and their desire for high returns.

Interestingly, the SEC’s attitude is changing. Just look at this data: by August 2025, mentions of blockchain in SEC documents skyrocketed to about 8,000 times. Do you know what this means? It indicates that regulators are shifting from a one-size-fits-all approach to a more nuanced stance. Especially after the approval of spot Bitcoin ETFs in 2024, Bitcoin-related content has dominated SEC filings, which clearly shows that mainstream financial institutions are warming up to Bitcoin.

These two phenomena send a signal: scammers will find fewer opportunities, while compliant institutions and projects will have more room to grow. For investors, distinguishing genuine from fake becomes especially crucial; choosing licensed platforms is no longer just a recommendation but a necessity.

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ZKProofEnthusiast

· 2h ago

It's the same old story with unlicensed platforms. Retail investors are easily blinded by high returns. They've never even heard of STOs but still dare to invest.

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GateUser-00be86fc

· 2h ago

It's the same old trick again, unlicensed platforms selling fake STOs, and retail investors still falling for it. 14 million, how many people have been scammed?

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MoneyBurnerSociety

· 2h ago

$14 million, and that's my annual tuition... No, it's someone else's. --- STO scam? I almost fell for it too. Luckily, I first lost my money in the contract. --- Basically, regulations are tightening more and more, but scam groups are becoming increasingly rampant. Retail investors are caught in the middle and repeatedly exploited. --- SEC has mentioned blockchain 8,000 times? Then my loss-making orders should be brought up too, after all, I am a contributor to the blockchain ecosystem. --- Unlicensed, fake investment clubs... this trick is even more outdated than my trading strategy, but why do people still believe it? --- Someone was scammed out of 14 million. I think my automatic stop-loss record is much more honest than theirs. --- The 8,000 mentions of increased regulation indicate not protection, but that real action is about to begin.

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SchrodingerProfit

· 2h ago

Another wave of rug pulls? These black hand groups really know how to play, setting up fake platforms to sell air coins... But honestly, why are retail investors still falling for it? STOs really require more caution. The SEC suddenly paying so much attention to blockchain, 8,000 times? It feels like they're about to go hard, but for us amateurs...

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DaisyUnicorn