🕵️♂️ The Scam Unveiled
In a move that's shaking up the crypto world, the SEC has charged three purported crypto trading platforms and four investment clubs with orchestrating a $14 million scam. Using social media ads and WhatsApp group chats, these fraudsters posed as financial pros and peddled fake AI-generated investment tips. The victims were enticed to open accounts on bogus crypto platforms, only to see their funds misappropriated.
💡 How They Did It
From January 2024 to January 2025, the alleged scammers used WhatsApp to operate so-called investment clubs. With ads on social media, they attracted investors by promising profits from AI-driven tips. Once confidence was gained, investors were lured into funding accounts on fake crypto platforms like Morocoin, Berge, and Cirkor. These platforms claimed to have government licenses and offered 'Security Token Offerings' from non-existent companies.
🔒 The Aftermath
When investors tried to withdraw their funds, they were hit with demands for advance fees, further deepening the scam. The SEC's complaint, filed in Colorado, charges the defendants with violating major securities laws. They seek permanent injunctions, civil penalties, and disgorgement of the ill-gotten gains. > 'Fraud is fraud, and we will vigorously pursue securities fraud that harms retail investors,' stated Laura D’Allaird, Chief of the Cyber and Emerging Technologies Unit.
🚨 Investor Alert
The SEC's Office of Investor Education has also issued a warning: be wary of investment tips on social media and messaging apps. Never rely solely on information from group chats. Always check the background of anyone offering investments through Investor.gov.
