SEC Files Charges Over $14 Million Crypto Scam Promoted On Social Media Apps

TLDR

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SEC charged three fake crypto platforms and four investment clubs over a $14 million fraud.
The scam operated from January 2024 to January 2025, according to the SEC complaint.
Victims were lured through social media ads and WhatsApp investment groups.
Funds were routed overseas through bank accounts and crypto wallets, the SEC said.

The U.S. Securities and Exchange Commission has taken legal action against several crypto-related entities accused of using social media to defraud investors. Regulators say the scheme targeted retail users through messaging apps and fake trading platforms. More than $14 million was allegedly taken from victims over one year. The case adds to growing enforcement efforts against online investment fraud tied to digital assets.

SEC files charges over coordinated online scam

The SEC charged three alleged crypto trading platforms and four investment clubs in a civil complaint filed in federal court in Colorado. The regulator accused the entities of running an organized online scam that operated from January 2024 through January 2025.

According to the SEC, the defendants presented themselves as legitimate investment services. They allegedly promoted crypto trading opportunities through paid social media advertisements. These ads encouraged users to join private investment clubs that claimed to offer professional guidance and steady returns.

U.S. SEC has charged multiple companies over a crypto scam that took $14M from retail investors.
The scheme used WhatsApp investment clubs and fake AI trading signals to push victims onto non-existent crypto platforms.
No real trading ever happened.
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— The Hacker News (@TheHackersNews) December 24, 2025

The entities named include Morocoin Tech Corp., Berge Blockchain Technology Co., Ltd., and Cirkor Inc. The complaint also names AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation. The SEC said all seven worked together to carry out the scheme.

Laura D’Allaird, head of the SEC’s cyber and emerging technologies unit, said the case reflects a common fraud pattern. She stated, “This matter highlights an all-too-common form of investment scam that is being used to target U.S. retail investors.”

Social media and messaging apps used to build trust

The SEC said the scheme relied heavily on WhatsApp and other messaging platforms. After responding to online ads, users were added to group chats run by people posing as financial professionals.

Inside the chatrooms, members received frequent investment messages and trading tips. Regulators said many of these messages were generated using artificial intelligence tools. The goal was to appear consistent and reliable, while creating the impression of steady profits.

The chats were designed to encourage participation and trust over time. Fraudsters allegedly answered questions, shared fake success stories, and praised early participants. The SEC said this approach helped convince victims to move funds onto external platforms promoted by the group leaders.

Fake trading platforms and token offerings

Once trust was established, investors were directed to open accounts on Morocoin, Berge, or Cirkor. The SEC said these platforms claimed to offer licensed and government-approved crypto trading services.

In reality, the regulator alleges that no real trading occurred. The platforms were described as entirely fake, with balances and profits shown only on screen. Investors believed their funds were growing, while no actual market activity took place.

The scheme later expanded to include fake security token offerings. The SEC said both the tokens and issuing companies did not exist. When investors tried to withdraw funds, they were asked to pay extra fees. These demands often continued until victims stopped sending money.

Losses exceed $14 million as SEC issues warning

The SEC estimates that at least $14 million was misappropriated from U.S. investors. According to the complaint, funds were transferred through multiple bank accounts and crypto wallets, then moved overseas.

Alongside the charges, the SEC issued an investor alert warning about scams tied to social media and group chats. The agency advised investors to verify anyone offering investment advice through official channels like Investor.gov.

The alert cautioned against unsolicited investment groups and unknown advisers. The SEC wrote, “Be wary of any group chat where you receive investment advice from someone you don’t know.” The case remains ongoing as the regulator seeks court action against the defendants.