SEC Files Charges Over $14 Million Crypto Scam Using Fake AI-Themed Investment Tips

According to SEC, charges have been filed against Morocoin Tech Corp., Berge Blockchain Technology Co., Ltd., and Cirkor Inc., along with investment clubs AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation (AIIEF) Ltd., and Zenith Asset Tech Foundation, over a scheme that swindled more than $14 million from retail investors.

The complaint describes a multi-step fraud in which scammers used social media ads and WhatsApp group chats to pose as financial professionals and push AI-generated investment tips, then directed victims to fake cryptocurrency trading platforms to fund accounts. It states that the ill-gotten proceeds totalled at least $14 million, with about $7.4 million in cryptocurrency and $6.6 million in fiat, moved overseas through bank accounts and wallets, including accounts held by individuals in Southeast Asia.

The groups operated in two phases, with AI Wealth and Lane Wealth running WhatsApp groups from January 2024 to June 2024, and AIIEF and Zenith from July 2024 to January 2025, while an unnamed Beijing-based individual allegedly funded the registrations. The defendants are accused of violating securities laws, and the SEC is seeking permanent injunctions, civil penalties, and repayment with prejudgment interest. The SEC said the scam also promoted purported Security Token Offerings for assets like SCT and HMB, which were described as fictitious.