A major fraud operation, allegedly swindling investors of more than $14 million, has been brought to light by the U.S. Securities and Exchange Commission (SEC). The intricate network is said to have preyed primarily on U.S. investors, utilizing social media ads, simulated cryptocurrency trading platforms, and WhatsApp groups to execute the scam from January 2024 to January 2025. Reportedly, the funds gathered were channeled abroad through a labyrinth of bank accounts and digital wallets.
How Social Media and Chat Groups Played Key Roles
The SEC complaint identified Morocoin Tech, Berge Blockchain Technology, and Cirkor as entities masquerading as legitimate trading platforms. Victims were initially approached via social media campaigns promising effortless returns through supposed AI-driven investment strategies. Lured individuals were prompted to join WhatsApp chat groups.
Impostors within these groups mimicked financial professionals, offering AI-influenced trading advice to build trust. Encouraged by these “experts,” investors opened accounts and transferred money to the bogus platforms, falsely presented as certified by authorities and claiming unsubstantiated governmental endorsements.
Additionally, organizations portrayed as investment clubs under names such as AI Wealth and Lane Wealth misled investors with non-existent Security Token Offerings (STOs). These offerings were misrepresented as affiliated with actual corporations, which in truth, were fictional and without any legitimately occurring trading activities.
Are Investors Learning Hard Lessons?
When investors sought to reclaim their money, further demands were made, insisting additional fees were necessary to process withdrawals. The SEC highlighted this tactic as typical in such scams, ultimately leading to the full misappropriation of investor funds which were routed overseas.
Laura D’Allaird from the SEC commented that the scheme evolved from social media outreach to garnering trust through WhatsApp, funneling investors’ money into fake platforms.
Sophisticated techniques, including AI-enabled scams and deepfake media falsely attributed to public figures, were used to skirt security protocols and simulate authenticity. Alongside fake correspondence and copied web interfaces, malicious links from supposed contacts were also sent.
Key conclusions from the SEC’s findings include:
- An extensive use of AI for fraudulent confidence building.
- Direct impersonation aimed at financial credibility.
- Misleading digital interfaces creating a veneer of legitimacy.
This scandal underscores the urgent need for vigilance in the digital investment landscape and greater regulatory oversight to protect unsuspecting investors from sophisticated scams sweeping the world of cryptocurrency.
