In this ongoing series on the SEC $14M Crypto Scam Charges, the U.S. Securities and Exchange Commission on December 19, 2025, charged seven entities with defrauding investors of over $14 million via fake WhatsApp groups, social media ads featuring deepfakes, AI-generated tips, and bogus trading platforms. No real trading occurred, and funds were laundered overseas. The agency also issued an investor alert on social media scams.
The Securities and Exchange Commission (SEC) filed charges on December 19, 2025, in federal court in Colorado against seven entities: Morocoin Tech Corp., Berge Blockchain Technology Co., Ltd., Cirkor Inc., AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation. These followed complaints to regulators in states like Washington and Arkansas.
From January 2024 to January 2025, the scam used targeted social media ads, including deepfake videos of financial experts, to lure U.S. retail investors into WhatsApp 'investment clubs.' Fraudsters posed as advisors and professors, sharing AI-generated tips, manipulated trade screenshots, and pitches for fake security token offerings (STOs) like those from nonexistent NeuralNet for brain-computer tech.
Victims deposited fiat via banks/couriers or crypto into unhosted wallets for accounts on sham platforms Morocoin, Berge, and Cirkor, which displayed fake real-time prices but conducted no trading. Withdrawals triggered demands for fees, with losses funneled through 27+ U.S. bank accounts and blockchains to overseas destinations in China, Hong Kong, Indonesia, and Southeast Asia. Notable cases included over $1M wired to China/Hong Kong and $1.4M to Indonesia.
"This matter highlights an all-too-common form of investment scam that is being used to target U.S. retail investors with devastating consequences," said Laura D’Allaird, chief of the SEC’s Cyber and Emerging Technologies Unit. The SEC seeks a cease-and-desist order, disgorgement, penalties, and a jury trial.
Complementing the action, the SEC issued an investor alert warning against social media and group chat scams, urging verification of opportunities and caution on unsolicited advice. This case underscores rising AI-themed crypto frauds exploiting new tech for legitimacy.
Prior coverage detailed the complaint's specifics; see the SEC $14M Crypto Scam Charges series for full context.