The U.S. Securities and Exchange Commission announced charges on Dec. 22 against three purported crypto asset trading platforms and four investment clubs, accusing them of a wide-ranging fraud targeting retail investors. According to the SEC, the defendants misappropriated at least $14 million from U.S.-based retail investors and funneled those funds overseas through a network of bank accounts and crypto asset wallets. The regulator also described recruitment through paid social media advertisements and messaging groups that promoted AI-driven trading tips before steering people to fake platforms. The SEC is seeking permanent injunctions, civil penalties, and disgorgement with prejudgment interest as part of its enforcement action.
SEC Announces Charges Against Crypto Platforms
The civil complaint filed in the U.S. District Court for the District of Colorado names the three alleged platforms — Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc. — and four investment clubs: AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation. The SEC says the charges were filed on Dec. 22 and accuse the defendants of operating fake trading services that targeted retail investors. The case underscores the role of online recruitment channels in such schemes; for more on related chat-based recruitment, see scams in crypto chats.
Details of the Alleged Fraud Scheme
Court filings allege the defendants misappropriated at least $14 million from U.S. retail investors and moved those funds overseas through multiple bank accounts and crypto wallets. The SEC describes a recruitment pattern that started with paid advertisements on social platforms, then moved prospective victims into WhatsApp groups where individuals posing as financial professionals promoted supposed AI-driven trading tips. According to the filings, no legitimate trading occurred on the platforms and investors were allegedly pressured to pay additional fees when attempting withdrawals.
SEC’s Response and Investor Protections
The SEC’s enforcement effort in this matter involves the agency’s Cyber and Emerging Technologies Unit; Laura D’Allaird is identified as the unit’s chief. In its complaint the agency seeks permanent injunctions, civil penalties, and disgorgement with prejudgment interest against the defendants. The SEC’s Office of Investor Education and Assistance has urged investors to verify promoters through Investor.gov and to remain cautious about opportunities pitched in online group chats, guidance that aligns with past enforcement involving investment offers such as investment fraud in mining.
Why this matters
If you run mining equipment in Russia, this enforcement action is relevant because the alleged scheme used channels you may encounter — paid social ads and messaging groups — to recruit retail investors. The SEC’s account shows how victims were funneled into private groups, pitched quick returns with AI-driven claims, and then directed to platforms where no real trading occurred. For a miner who exchanges, invests, or allocates proceeds, the main risks are misdirection into fraudulent offers, potential loss of funds, and obstacles to withdrawing money without paying further fees.
Even when a case is brought in a U.S. court, the tactics described — fake platforms, pressure to pay extra fees, and movement of funds through bank and crypto accounts — are operational warnings you can use locally. Recognizing the recruitment pattern helps you avoid offers that ask you to join private groups or to move funds to unfamiliar wallets or bank accounts.
What to do?
Follow these practical steps to reduce the risk of falling into similar schemes:
- Verify promoters and platforms through official resources, primarily Investor.gov, as recommended by the SEC.
- Be skeptical of paid ads and unsolicited invitations to WhatsApp or other private groups that promise AI-driven trading or guaranteed returns.
- Refuse to pay additional ‘‘withdrawal’’ or ‘‘verification’’ fees; court filings say investors were allegedly pressured to pay such fees.
- Keep records of communications and advertisements (screenshots, messages, payment receipts) in case you need to document a claim.
- When in doubt, pause before sending funds and consult trusted public resources rather than acting on directions from group chats.
