SEC Cracks Down on $14 Million Crypto Fraud Ring Using WhatsApp Groups & Fake AI Trading Platforms (2025 Update)
The U.S. Securities and Exchange Commission (SEC) has taken decisive action against a sophisticated crypto investment scam that allegedly defrauded American retail investors of over $14 million. Announced on December 22, 2025, the charges highlight the growing dangers of social media-driven fraud in the cryptocurrency space, particularly schemes exploiting WhatsApp group chats and AI-generated signals.
How the Alleged Scam Operated
The operation, which reportedly spanned from January 2024 to January 2025, began with targeted advertisements on popular social media platforms. These ads lured users into joining exclusive “investment clubs” — in reality, coordinated WhatsApp groups where fraudsters impersonated experienced financial professionals.
Here are some common visual examples of how such WhatsApp-based investment scams often appear to victims:
Inside these groups, participants received supposedly AI-powered trading tips and “signals” designed to demonstrate consistent profits and build trust. Victims were then directed to deposit funds into accounts on three purported crypto trading platforms: Morocoin Tech Corp., Berge Blockchain Technology Co., Ltd., and Cirkor Inc..
These platforms falsely claimed to hold legitimate government licenses, but according to the SEC complaint, no actual trading occurred — the sites were entirely fabricated. Funds were misappropriated and transferred overseas through networks of bank accounts and crypto wallets.
The scheme escalated further with promotions of nonexistent security token offerings (STOs) and demands for advance fees when investors attempted withdrawals, resulting in even greater losses. Some individual victims reportedly wired hundreds of thousands to accounts in locations like China, Hong Kong, and Indonesia.
The named defendants include the three platforms above, plus four investment clubs: AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation.
SEC’s Strong Response and Warnings
Laura D’Allaird, Chief of the SEC’s Cyber and Emerging Technologies Unit, emphasized:This matter highlights an all-too-common form of investment scam… Our complaint alleges a multi-step fraud that attracted victims with ads on social media, built victims’ trust in group chats… then convinced victims to put their money into fake crypto asset trading platforms where it was misappropriated.
The SEC filed the complaint in the U.S. District Court for the District of Colorado, alleging violations of anti-fraud provisions under the Securities Act of 1933 and the Securities Exchange Act of 1934. The agency seeks permanent injunctions, civil penalties, and disgorgement with interest from the platforms.
Alongside the charges, the SEC released an investor alert titled “Group Chats as a Gateway to Investment Scams”, cautioning against relying on unsolicited advice from unknown participants in social media or messaging app groups.
SEC logo and crypto scam warnings — stay vigilant:
Key Protection Tips from the SEC
- Never trust investment advice from strangers in group chats.
- Verify any promoter or platform through official channels like Investor.gov.
- Be suspicious of promises of guaranteed profits, especially involving crypto or AI tools.
- Avoid sending funds to unverified platforms or paying advance fees for withdrawals.
This case serves as a stark reminder of the risks in unregulated crypto investments, particularly those promoted via social media and messaging apps. Always conduct independent research and consult licensed professionals before investing. For the latest updates, check the official SEC press release. Stay safe in the digital asset space!
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.