SEC Charges Firms in $14 Million AI-Themed Cryptocurrency Investment Scam
December 24, 2025 | By Ravie Lakshmanan
The U.S. Securities and Exchange Commission (SEC) has filed charges against multiple companies involved in a sophisticated cryptocurrency scam that defrauded retail investors of over $14 million. This elaborate fraud scheme exploited the popularity of artificial intelligence (AI) by using fake AI-generated investment tips to lure victims into bogus crypto asset trading platforms.
Entities Charged
The SEC’s complaint targets several crypto asset trading platforms and related investment clubs, including:
- Crypto Trading Platforms: Morocoin Tech Corp., Berge Blockchain Technology Co., Ltd., and Cirkor Inc.
- Investment Clubs: AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation (AIIEF) Ltd., and Zenith Asset Tech Foundation.
Scam Overview
According to the SEC, the fraud operated through multiple coordinated steps:
- Initial Contact: Scammers placed social media advertisements that attracted unsuspecting retail investors.
- Building Trust: Investment clubs on messaging apps such as WhatsApp enticed individuals to join groups where scam operatives posed as financial experts.
- Fake AI Tips: These “experts” delivered investment advice, falsely claiming to use AI-generated “signals” to recommend trades and investment opportunities.
- Investment in Bogus Platforms: Victims were persuaded to fund accounts on fraudulent cryptocurrency trading platforms that purportedly had government licenses.
- Non-Existent Trading & STOs: No legitimate trading took place. The platforms offered fictitious Security Token Offerings (STOs) associated with sham companies.
- Withholding Funds: When investors sought to withdraw funds, they were hit with additional advance fee demands before being cut off entirely from the services.
Details on the Entities and Operations
- Morocoin Tech Corp.: Founded around December 2023, with a currently delinquent website (h5.morocoin[.]top).
- Berge Blockchain Technology Co., Ltd.: Established around June 2022; website www.bergev[.]org is delinquent.
- Cirkor Inc.: Created in May 2024 but administratively dissolved in October 2025; website www.cirkortrading[.]com.
The investment clubs operated WhatsApp groups for different periods in 2024 and early 2025, staffed by individuals assuming roles like "professors" and "assistants" who provided macroeconomic updates and trade tips. These clubs promoted STOs for cryptocurrencies SCT and HMB, allegedly issued by companies SatCommTech and HumanBlock, respectively—both organizations found to be fictitious.
An individual based in Beijing is alleged to have financed the registration of some of these investment clubs, according to the SEC complaint.
Financial Details and Money Laundering
The fraud siphoned off at least $14 million, with approximately $7.4 million in cryptocurrency assets and $6.6 million in fiat currency. Funds were moved offshore through a complex web of bank accounts and crypto wallets, some reportedly tied to Chinese and Burmese nationals in Southeast Asia.
Examples include:
- A Morocoin investor sending over $1 million via seven separate wires to accounts in China and Hong Kong.
- A Cirkor investor wiring more than $1.4 million to a bank in Indonesia.
Investor Warnings and Community Reports
Multiple Reddit users have reported losses to the scam, with AIIEF’s WhatsApp groups specifically flagged for using fictitious names such as “Richard Dill” and “Daisy Akemi” for their operation’s “professors” and “assistants.”
Legal Action and SEC Statement
The SEC has charged the defendants with violating anti-fraud provisions under the Securities Act of 1933 and the Securities Exchange Act of 1934. The agency seeks permanent injunctions, civil penalties, and restitution of investors’ funds with prejudgment interest.
Laura D’Allaird, Chief of the SEC’s Cyber and Emerging Technologies Unit, commented, “This matter highlights an all-too-common form of investment scam that is being used to target U.S. retail investors with devastating consequences. Fraud is fraud, and we will vigorously pursue securities fraud that harms retail investors.”
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