SEC Charges Three Fake Crypto Platforms and Four Investment Clubs in $14 Million Retail Investor Scam

The U.S. Securities and Exchange Commission (SEC) announced charges against three purported cryptocurrency trading platforms—Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc.—and four associated investment clubs—AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation.

The agencies allege the defendants orchestrated an elaborate fraud that misappropriated more than $14 million from U.S. retail investors between January 2024 and January 2025. The scheme used social media ads, WhatsApp groups, fake AI-generated trading tips, bogus platforms, and nonexistent “Security Token Offerings” to lure victims before demanding advance fees on withdrawal attempts.

How the Alleged Scam Operated

According to the SEC complaint filed in the U.S. District Court for the District of Colorado:

• Recruitment Phase: The investment clubs advertised on social media, inviting users to join WhatsApp groups promising AI-driven investment advice.
• Trust Building: Fraudsters posed as financial experts, sharing fabricated profitable trades to gain confidence.
• Platform Lure: Victims were directed to deposit funds on fake trading sites (Morocoin, Berge, Cirkor) claiming government licenses.
• Fake Offerings: Investors were sold nonexistent Security Token Offerings supposedly issued by legitimate companies.
• No Actual Trading: Platforms displayed illusory balances; no real investments occurred.
• Withdrawal Blocks: Requests triggered demands for “advance fees,” further draining victims.
• Fund Flow: Stolen money funneled overseas via bank accounts and crypto wallets.

The SEC described this as a “multi-step fraud” targeting retail investors with devastating consequences.

• Victim Impact: >$14 million misappropriated from U.S. investors.
• Timeframe: January 2024–January 2025.
• Charges: Violations of anti-fraud provisions under the Securities Act of 1933 and Exchange Act of 1934.

SEC’s Response and Relief Sought

The Commission seeks:

• Permanent injunctions against all defendants.
• Civil penalties.
• Disgorgement plus prejudgment interest from the three platforms.

Laura D’Allaird, Chief of the Cyber and Emerging Technologies Unit, emphasized: “Fraud is fraud, and we will vigorously pursue securities fraud that harms retail investors.”

Broader Context: Rising Crypto Investment Scams in 2025

This case highlights persistent threats in the crypto space:

• Social Media Targeting: Common vector for pig-butchering and confidence scams.
• Fake Platforms: Imitate legitimate exchanges with professional appearances.
• AI Hype Exploitation: Misuse of “AI tips” to build false credibility.
• Advance Fee Trap: Classic red flag in withdrawal-denial schemes.

The action aligns with heightened SEC enforcement against unregistered offerings and deceptive practices amid growing retail crypto participation.

In summary, the SEC’s December 22, 2025, charges against three fake crypto platforms and four investment clubs allege a sophisticated $14 million fraud using social media, WhatsApp groups, bogus AI advice, and nonexistent token offerings. Funds were misappropriated with no real trading, underscoring ongoing risks for retail investors. The case seeks injunctions, penalties, and disgorgement while reinforcing the Commission’s commitment to combating crypto scams. Stay vigilant against unsolicited investment groups and verify platforms independently.