The U.S. Securities and Exchange Commission combats AI-themed cryptocurrency fraud

According to financefeeds, the U.S. Securities and Exchange Commission has charged three so-called cryptocurrency trading platforms and four investment clubs, accusing them of engaging in coordinated fraud that defrauded retail investors of at least $14 million.

The regulator stated that the operation relied on social media ads, private messaging apps, and fake trading interfaces to deceive victims into believing they were investing through legitimate cryptocurrency channels. The defendants named in the complaint include Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc., as well as investment clubs AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Technology Foundation. The SEC indicated that the scheme lasted at least from January 2024 to January 2025, targeting retail investors in the U.S. This case highlights a form of fraud that combines traditional scams with digital tools, using familiar social platforms and sophisticated interfaces to create the illusion of a professional investment operation.