SEC charges crypto trading platforms and investment clubs over $14 million scam
Key Takeaways
The US SEC has charged crypto trading platforms Morocoin Tech, Berge Blockchain Technology, and Cirkor, as well as four related investment clubs, accusing them of running a coordinated crypto investment fraud that diverted at least $14 million from retail investors.
According to the complaint, the investment clubs, including AI Wealth, Lane Wealth, AI Investment Education Foundation, and Zenith Asset Tech Foundation, utilized WhatsApp and social media platforms to establish investor trust and promote purported AI-generated trading strategies.
Investors were allegedly persuaded to open accounts on associated crypto trading platforms that claimed to be licensed and legitimate. These platforms promoted fictitious Security Token Offerings and nonexistent issuing companies, while preventing legitimate withdrawals and imposing fraudulent advance fees.
The SEC is seeking injunctions, civil penalties, and disgorgement against the defendants.
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