The U.S. Securities and Exchange Commission (SEC) has charged multiple companies with engaging in an elaborate cryptocurrency scam that defrauded retail investors of more than $14 million.
The complaint also charges crypto trading platforms 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 (AIIEF) Ltd., and Zenith Asset Tech Foundation in connection with the operation.
The SEC said the scam unfolded as a multi-step scam in which the fraudsters lured unsuspecting users with ads on social media, posed as financial experts, and built trust through group chats with promises of profits from investment tips generated by artificial intelligence (AI).
The scammers then convinced the victims to invest their funds in a fake crypto asset trading platform, but they were then scammed. of
According to the SEC, AI Wealth, Lane Wealth, AIIEF, and Zenith operated investment clubs on messaging apps like WhatsApp, and retail investors were induced to join through advertisements on social media. AI Wealth and Lane Wealth operated WhatsApp groups from at least January 2024 to June 2024, while AIIEF and Zenith operated from at least July 2024 to January 2025.
The complaint alleges that an anonymous individual based in Beijing, China paid registration fees for AI Wealth, Lane Wealth, and Zenith. The details of the cryptocurrency platform are as follows:
Morocoin Tech Corp. – Founded around December 2023 and accessible at h5.morocoin[.]Top (currently in arrears) Berge Blockchain Technology Co., Ltd. – Founded around June 2022 and accessible from www.bergev[.]org (Currently Delinquent) Cirkor Inc. – Founded around May 2024 and accessible at www.cirkortrading[.]com (disbanded in October 2025)
Each of these clubs included a “professor” who sent updates on macroeconomic developments and stock commentary to investors via WhatsApp, and an “assistant” who was responsible for day-to-day interactions with participants. These personas also send trading recommendations falsely claiming to be based on AI-generated “signals.”
“Both clubs gained the trust of investors with purported AI-generated investment tips before falsely claiming to have government licenses to induce investors to open accounts and provide funding for the virtual currency trading platforms Morocoin, Verge, and Silcor,” the SEC said.
“The investment club and platform then allegedly offered a ‘security token offering’ that purported to be issued by a legitimate company. In fact, no trading took place on the trading platform, it was fake, and the purported security token offering and its issuing company did not exist.”
The AI Wealth group and the Lane Wealth WhatsApp group are said to have facilitated an STO of a cryptocurrency asset called SCT allegedly issued by SatCommTech. Similarly, AIIEF and Zenith WhatsApp groups promoted an STO of another crypto asset called HMB issued by HumanBlock. Both SatCommTech and HumanBlock have been identified as fictitious.
To make matters worse, when investors tried to withdraw their funds, the fake platform defrauded them a second time by asking them to pay an upfront fee to access the funds in their accounts. Ultimately, the platform cuts off investors’ access to the service.
The ill-gotten proceeds, totaling at least $14 million, were transferred overseas through a series of bank accounts and crypto wallets, and in some cases through accounts held by Chinese and Burmese individuals living in Southeast Asia. Of the total misappropriated funds, crypto assets accounted for at least $7.4 million and fiat currencies accounted for $6.6 million.
In one case, a Morocoin investor made seven separate transfers of more than $1 million to accounts in China and Hong Kong. In another case, a Cirkor investor wired more than $1.4 million to an Indonesian bank. There have also been multiple reports on Reddit of individuals losing money to scams, with AIIEF using names such as “Richard Dill” and “Daisy Akemi” for professors and assistants.
The defendants are charged with violating the anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. Additionally, the SEC is seeking a permanent injunction, civil penalties, and repayment of the funds with prejudgment interest.
“This issue highlights an all-too-common form of investment fraud that is being used to target retail investors in the United States with devastating results,” said Laura Dalléard, Director of Cyber and Emerging Technologies. “Fraud is fraud, and we will vigorously pursue securities fraud that harms individual investors.”
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