The U.S. Securities and Exchange Commission has charged three purported crypto asset trading platforms and four investment clubs for allegedly running an online investment scam that defrauded more than $14 million.
In a complaint filed Monday in the U.S. District Court of Colorado, the SEC accused the seven entities of orchestrating what the regulator described as an “investment confidence scam” that relied heavily on social media and messaging apps.
The entities named in the complaint are: Morocoin Tech Corp., Berge Blockchain Technology Co., Ltd., and Cirkor Inc., along with investment clubs AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation.
“This matter highlights an all-too-common form of investment scam that is being used to target U.S. retail investors with devastating consequences,” said Laura D’Allaird, chief of the cyber and emerging technologies unit at the SEC, in a statement.
The SEC alleges that the scheme ran from January 2024 through January 2025 and targeted victims through advertisements on popular social media platforms. These ads invited users to join so-called investment clubs that operated primarily on WhatsApp, where fraudsters posed as financial professionals and used group chats to cultivate trust.
WhatsApp chatrooms
Once in the chatrooms, investors received what the SEC described as AI-generated investment tips intended to build credibility and simulate consistent profits. The clubs then allegedly directed victims to open and fund accounts on Morocoin, Berge, and Cirkor — crypto asset trading platforms that the SEC said were entirely fake.
The agency said the platforms claimed to offer legitimate, government-licensed trading services. In reality, no trading took place, the SEC said.
The scheme further escalated through the promotion of fake security token offerings, the SEC said. The agency also alleged that both the offerings and the issuing companies were fictitious. When investors attempted to withdraw their funds, the defendants allegedly demanded additional advance fees, compounding the losses.
In total, the SEC said the defendants misappropriated at least $14 million from U.S. investors. Those funds were allegedly routed overseas through a network of bank accounts and crypto wallets.
Separately, the SEC issued an investor alert on Monday, warning that fraudsters frequently use social media and group chats to promote scams. The agency urged investors to verify the background of anyone offering through its Investor.gov website.
“Be wary of any group chat where you receive investment advice from someone you don’t know – this is often how investment scams begin,” the SEC wrote.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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