The SEC says three purported crypto trading platforms and four purported investment clubs defrauded U.S.-based retail investors of at least $14 million. In a complaint filed December 22, 2025, the agency alleged that social media ads and WhatsApp groups promoted AI-generated investment tips before directing people to fake platforms where no genuine trading occurred. These are allegations, not findings of liability.
What the SEC’s $14 million crypto case alleges
The SEC announced charges against three purported crypto asset trading platforms—Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc.—and four purported investment clubs: AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd. (AIIEF), and Zenith Asset Tech Foundation. The complaint alleges that the defendants defrauded U.S.-based retail investors of at least $14 million. The SEC’s announcement described the amount as more than $14 million. SEC announcement; SEC complaint
The SEC filed the case in the U.S. District Court for the District of Colorado as No. 25-cv-04102. The complaint says the alleged conduct ran from at least January 2024 through January 2025. SEC complaint; SEC litigation release
How the alleged scheme worked
Ads and group chats built trust
According to the complaint, the investment clubs used social media advertisements to invite U.S.-based investors into WhatsApp groups presented as investment communities led by experienced financial professionals. People described as “professors” and “assistants” allegedly sent recommendations they said were based on AI-generated signals. Some ads allegedly used deepfake videos of prominent financial professionals. SEC complaint
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Investors were directed to purported crypto platforms
The clubs allegedly told investors to open and fund accounts on Morocoin, Berge, and Cirkor. The platforms purportedly claimed regulatory licenses, including SEC or National Futures Association (NFA) licenses, and promoted purported Security Token Offerings as investments in legitimate businesses. The SEC alleges that the platforms were not genuine, no trading took place, and both the offerings and supposed issuing companies were fictitious. SEC complaint; SEC litigation release
Displayed profits did not mean money was invested
The complaint says account interfaces could show balances and purported profits, even though investor assets were allegedly misappropriated rather than invested as represented. When investors tried to withdraw funds, the defendants allegedly demanded advance fees. The SEC further alleges that at least $14 million was misappropriated from U.S.-based retail investors and funneled overseas through bank accounts and crypto asset wallets. SEC complaint; SEC litigation release
What the SEC charged—and what remains undecided
The SEC alleges violations of federal securities antifraud provisions. It asked the court for permanent injunctions and civil penalties against all defendants, and for disgorgement with prejudgment interest against the platform defendants. Those are allegations and requested remedies; they are not a court’s finding or an order that investors will be repaid. SEC litigation release
A public docket aggregator snapshot reports that the SEC moved for default judgment on April 14, 2026, but that report was last retrieved April 15, 2026. It does not establish whether the court later entered an order or how the case was ultimately resolved. Docket Alarm case page
Warning signs the SEC says investors should watch for
In an investor alert issued December 22, 2025, the SEC warned against relying solely on investment advice shared in group chats. The alert identifies these potential red flags: SEC investor alert
- An unsolicited or ad-driven invitation to an investment group chat.
- People claiming to be experts who may be impostors.
- Investment recommendations described as AI-generated “signals.”
- High-return claims paired with little or no risk.
- A demand to pay a fee or tax before supposed profits can be withdrawn.
What to do if a group asks for a withdrawal fee
The SEC’s guidance is to verify the identity of an investment professional, research an investment independently, and report possible securities fraud to the agency. Investor.gov provides a tool for checking professionals’ backgrounds. These steps can help with verification, but no single check guarantees that an investment is legitimate or that lost money can be recovered. SEC investor alert
Laura D’Allaird, chief of the SEC’s Cyber and Emerging Technologies Unit, summarized the agency’s allegations this way: “Our complaint alleges a multi-step fraud that attracted victims with ads on social media, built victims’ trust in group chats where fraudsters posed as financial professionals and promised profits from AI-generated investment tips, then convinced victims to put their money into fake crypto asset trading platforms where it was misappropriated,” SEC press release, December 22, 2025
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