SEC Charges Several Companies Over $14 Million Cryptocurrency Scam Leveraging Fake AI Investment Tips
December 24, 2025 — The U.S. Securities and Exchange Commission (SEC) has announced enforcement actions against multiple entities for orchestrating an elaborate cryptocurrency scam that deceived retail investors out of more than $14 million. The charges, filed recently, target a network of companies and investment clubs that used counterfeit AI-themed investment advice to lure victims into fraudulent trading platforms.
Overview of the Scam
According to the SEC complaint, the operation involved crypto asset trading platforms Morocoin Tech Corp., Berge Blockchain Technology Co., Ltd., and Cirkor Inc., alongside investment clubs named AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation (AIIEF) Ltd., and Zenith Asset Tech Foundation.
The scam unfolded in stages. Fraudsters initially attracted unsuspecting investors through social media advertisements endorsing artificial intelligence (AI)-generated investment tips. These ads directed investors to join WhatsApp-based group chats managed by the implicated investment clubs. Within the groups, the scammers impersonated financial professionals, cultivating trust by sharing fraudulent market analyses and purported AI-generated trading signals.
Once trust was established, victims were persuaded to transfer funds into the fake cryptocurrency trading platforms. These platforms falsely claimed to have government licenses and offered Security Token Offerings (STOs) allegedly backed by legitimate businesses. In reality, the platforms were fake, no actual trading took place, and the STOs and issuing companies never existed.
Details on the Entities and Operations
The SEC outlines that AI Wealth and Lane Wealth operated WhatsApp groups from at least January 2024 through June 2024, whereas AIIEF and Zenith managed theirs from July 2024 to January 2025. An individual based in Beijing, China reportedly financed the registrations for AI Wealth, Lane Wealth, and Zenith, although their identity remains unnamed in the filing.
Each investment club featured roles such as a so-called "professor," who sent updates on macroeconomic trends and stock commentary, and an "assistant," who managed daily interactions with group members. Both personas disseminated false trade recommendations purportedly derived from AI signals.
The fraudulent crypto platforms identified in the complaint include:
- Morocoin Tech Corp. — Established around December 2023; website h5.morocoin[.]top (currently delinquent)
- Berge Blockchain Technology Co., Ltd. — Established around June 2022; website www.bergev[.]org (currently delinquent)
- Cirkor Inc. — Established around May 2024; website www.cirkortrading[.]com (administratively dissolved October 2025)
The WhatsApp groups promoted STOs for fabricated crypto assets, such as SCT issued by a fictitious company SatCommTech via AI Wealth and Lane Wealth, and HMB issued by the non-existent HumanBlock through AIIEF and Zenith.
Financial Impact and Money Laundering
Victims attempting to withdraw funds faced additional deception: the platforms demanded advance payment of fees to unlock their accounts, only to subsequently cut off all access, effectively stealing even more money.
The total illicit proceeds sum to at least $14 million, with approximately $7.4 million in cryptocurrency and $6.6 million in fiat currency. The funds were funneled through a complex web of bank accounts and crypto wallets, frequently linked to individuals in China and Southeast Asia (including Burma).
Specific examples include a single Morocoin investor wiring over $1 million through multiple transactions to accounts in China and Hong Kong, and a Cirkor investor transferring more than $1.4 million to an Indonesian bank.
Legal Actions and SEC Response
The defendants are charged with violating anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC is seeking permanent injunctions, civil penalties, and the disgorgement of ill-gotten funds plus prejudgment interest.
Laura D’Allaird, Chief of the SEC’s Cyber and Emerging Technologies Unit, emphasized the broader threat:
"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."
Community Alert
Multiple reports on online forums such as Reddit have surfaced, with victims warning others about the scam. The AIIEF WhatsApp groups reportedly used aliases like “Richard Dill” and “Daisy Akemi” for the fraudulent “professor” and “assistant” roles to bolster their credibility.
Investors are urged to exercise caution when approached with unsolicited investment offers, especially those involving unverified AI-generated tips or unlicensed cryptocurrency platforms.
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This article was originally published by The Hacker News and is republished here with full attribution.