$14 Million Crypto Scam Exposed: How Fake WhatsApp Investment Clubs and AI Signals Trapped Investors – SEC Charges Revealed
The U.S. Securities and Exchange Commission (SEC) has filed charges against seven entities in a sophisticated year-long scheme that allegedly defrauded U.S. retail investors of more than $14 million. Announced on December 22, 2025, the case exposes a multi-layered “investment confidence scam” leveraging social media ads, private WhatsApp groups, artificial intelligence hype, fabricated trading dashboards, nonexistent security token offerings (STOs), and classic advance-fee tactics.
How the Scam Unfolded: A Step-by-Step Breakdown
Fraudsters began by blasting targeted advertisements across social media platforms, some featuring deepfake videos impersonating well-known financial figures to grab attention. These ads invited users to join exclusive “investment clubs” — in reality, coordinated WhatsApp groups promising expert guidance and high returns.
Once inside, victims encountered personas like “professors” and “assistants” who shared supposed AI-generated trading signals for stocks and cryptocurrencies. To build credibility, group members (likely fake accounts controlled by scammers) posted glowing testimonials and manipulated screenshots showing massive “profits.” This created a false sense of community success and urgency.
Primed by these signals, investors were directed to deposit funds into one of three purported crypto trading platforms:
- Morocoin Tech Corp. (accessible via h5.morocoin[.]top, now delinquent)
- Berge Blockchain Technology Co. Ltd. (www.bergev[.]org)
- Cirkor Inc. (www.cirkortrading[.]com, administratively dissolved)
These sites mimicked legitimate exchanges with real-time price feeds, transaction interfaces, and fabricated account balances — but no actual trading ever occurred. The platforms falsely boasted government licenses and even referenced phony regulatory investigations to add pressure.
The scheme escalated with promotions of fake Security Token Offerings (STOs), marketed as regulated, IPO-like opportunities from nonexistent companies such as “NeuralNet” (promoted as brain-computer interface tech), “SatCommTech,” and “HumanBlock.” These bogus tokens (e.g., SCT and HMB) were pitched as exclusive, high-potential investments to extract larger deposits.
The final trap snapped shut when victims attempted withdrawals. Instead of releasing funds, operators demanded upfront payments for “taxes,” “loan repayments,” “investigation fees,” or “expedited processing.” Threats of three-year account freezes were common. In some cases, investors wired over $1 million to accounts in China, Hong Kong, or Indonesia — funds that were quickly funneled overseas through dozens of bank accounts and unhosted crypto wallets.
Defendants and Alleged Violations
The SEC’s complaint, filed in the U.S. District Court for the District of Colorado, names:
- Platform entities: Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., Cirkor Inc.
- Investment club entities: AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd. (AIIEF), Zenith Asset Tech Foundation
Investigators link operations to individuals in China, Malaysia, and Hong Kong, with one Beijing-based person allegedly funding registrations for several clubs.
The defendants face charges for violating anti-fraud provisions of the Securities Act of 1933 and Securities Exchange Act of 1934. The SEC seeks permanent injunctions, civil penalties, and disgorgement with prejudgment interest from the platforms.
Major Red Flags in Crypto Scams Like This One
This case mirrors patterns highlighted in SEC investor alerts on group chats, AI fraud, and fake regulators:
- Unsolicited group chats on messaging apps — WhatsApp “clubs” led by unknown “experts” dispensing tips.
- AI hype and guaranteed returns — Promises of low-risk, high-profit “signals” or algorithms.
- Fake licenses and regulators — Claims of SEC or government approval without verifiable proof.
- Too-perfect screenshots — Manipulated proof of profits.
- Advance fees for withdrawals — Legitimate platforms never require prepayments to access your own money.
- Pressure to send funds to unknown wallets — Direct transfers to personal or overseas accounts.
Quick Verification Checklist: Protect Yourself in Under 2 Minutes
Use these official tools from Investor.gov:
- Search the individual or firm on Investor.gov’s “Check Out Your Investment Professional” tool.
- Check the platform against the SEC’s PAUSE list (for unregistered entities and fake regulators).
- Verify any license or registration directly on the regulator’s official database (e.g., SEC EDGAR for offerings).
- Paste promotional text into a search engine — repeated identical copy often signals templates used across scams.
Never rely on chat links, screenshots, or phone numbers provided in groups. Contact regulators using details from official websites only.
Why This Case Matters in the Current Crypto Landscape
As AI tools make it easier to create convincing deepfakes, fake dashboards, and scripted testimonials, scams like this are becoming more scalable and harder to spot. Encrypted apps like WhatsApp provide private funnels away from public oversight, while social media ads target vulnerable retail investors.
The SEC’s action, combined with parallel investor alerts, underscores the risks of “exclusive” online investment communities. Even if funds seem lost, reporting to the SEC complaint center or FBI’s IC3 helps build cases, trace assets, and prevent future victims.
Stay vigilant — real investments involve risk, and no legitimate opportunity guarantees profits or demands upfront fees to release them. Always verify independently before sending a single dollar.
Disclaimer: 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.