The U.S. Securities and Exchange Commission cracks down on AI-themed crypto fraud

BlockBeats News, December 24, according to financefeeds, the U.S. Securities and Exchange Commission has charged three so-called crypto trading platforms and four investment clubs, accusing them of orchestrating a coordinated fraud that defrauded retail investors of at least $14 million. The regulator stated that the scheme relied on social media advertisements, private messaging apps, and fake trading interfaces to deceive victims into believing they were investing through legitimate crypto channels.

The defendants named in the complaint include Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc., as well as investment clubs AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Technology Foundation. The SEC stated that the scheme lasted at least from January 2024 to January 2025, targeting retail investors based in the United States.

This case highlights a form of fraud that combines traditional scams with digital tools, using familiar social platforms and sophisticated interfaces to create the illusion of professional investment operations.