SEC Charges Multiple Entities in $14 Million Cryptocurrency Scam Featuring Fake AI-Themed Investment Tips
December 24, 2025 – By Ravie Lakshmanan
The U.S. Securities and Exchange Commission (SEC) has formally charged several companies for orchestrating a sophisticated cryptocurrency scam that defrauded retail investors of over $14 million. The scam notably exploited investors’ trust by using fake artificial intelligence (AI)-themed investment advice to lure victims into bogus trading platforms.
Entities Involved and Alleged Scheme
The SEC’s complaint names the crypto asset trading platforms Morocoin Tech Corp., Berge Blockchain Technology Co., Ltd., and Cirkor Inc., alongside investment clubs AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation (AIIEF) Ltd., and Zenith Asset Tech Foundation. According to the SEC, these entities operated in coordinated steps designed to convince unsuspecting investors to part with their money under false pretenses.
The fraud began with targeted advertisements on social media, encouraging users to join investment clubs hosted on messaging platforms like WhatsApp. Within these groups, scammers impersonated financial professionals—often referred to as “professors” and “assistants”—who shared regular updates on market conditions and purportedly generated AI-based trade recommendations.
Investors were then persuaded to deposit funds into the named cryptocurrency platforms—Morocoin, Berge, and Cirkor—which falsely claimed to hold government licensing and legitimacy. The complaint outlines these platforms as follows:
- Morocoin Tech Corp.: Established circa December 2023; website h5.morocoin[.]top (currently delinquent)
- Berge Blockchain Technology Co., Ltd.: Established circa June 2022; website www.bergev[.]org (currently delinquent)
- Cirkor Inc.: Established circa May 2024; website www.cirkortrading[.]com (administratively dissolved in October 2025)
How The Scam Worked
The fraudulent investment clubs operated in overlapping timeframes—AI Wealth and Lane Wealth from January to June 2024, and AIIEF and Zenith from July 2024 to January 2025. Engaging users through WhatsApp groups, these clubs promoted “Security Token Offerings” (STOs) for fake cryptocurrencies, such as SCT issued by the fictitious SatCommTech company, and HMB issued by the fabricated HumanBlock entity.
Victims were led to believe that the investment advice was AI-generated and reliable, which helped build confidence before steering them to invest via the counterfeit trading platforms. Importantly, the SEC revealed that no actual trading took place. The STOs and the companies purportedly issuing them were fraudulent.
When investors sought to withdraw their funds, the platforms imposed upfront fees that victims had to pay to unlock their money, resulting in a second layer of fraud. Eventually, access to the platforms was terminated, cutting off communication and leaving victims unable to recover their investments.
Financial Impact and Money Laundering
The total amount defrauded stands at a minimum of $14 million, split almost evenly between cryptocurrency assets (approximately $7.4 million) and fiat currency ($6.6 million). The SEC uncovered that these illicit proceeds were funneled through an intricate network of bank accounts and cryptocurrency wallets across multiple countries, including China and Southeast Asia.
For example, one Morocoin investor wired over $1 million in seven transactions to accounts in China and Hong Kong, while a Cirkor investor sent more than $1.4 million to a bank in Indonesia. The complaint also notes that an individual based in Beijing financed the registration of several involved investment clubs.
Reports from various social media platforms, including Reddit, have surfaced documenting personal accounts of individuals who fell victim to this scam. The investment clubs reportedly used fabricated names like “Richard Dill” and “Daisy Akemi” for their “professor” and “assistant” roles within WhatsApp groups.
Legal Action and Enforcement
The SEC has charged the defendants with violating anti-fraud provisions under the Securities Act of 1933 and the Securities Exchange Act of 1934. In addition to seeking permanent injunctions and civil penalties, the commission demands repayment of defrauded funds along with prejudgment interest.
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 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.”
Investor Advisory
This case serves as a critical reminder to exercise caution when encountering investment opportunities, particularly those claiming AI-generated returns or promoted through social media and messaging apps. Investors should verify platform legitimacy, licensing status, and seek independent financial advice to avoid falling prey to scams.
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