Haciyev Reşit 
The U.S. Securities and Exchange Commission (SEC) has taken a significant step against a large-scale investment fraud targeting the cryptocurrency market. The regulator filed charges against seven entities for allegedly defrauding investors of at least $14 million through fake crypto trading platforms and investment clubs.
Fake Platforms and Investment Clubs Under Scrutiny
According to the SEC’s complaint filed in the U.S. District Court for the District of Colorado, three crypto trading platforms and four investment clubs acted in coordination to target retail investors. The accused crypto platforms are Morocoin Tech, Berge Blockchain Technology, and Cirkor, while the investment clubs include AI Wealth, Lane Wealth, AI Investment Education Foundation, and Zenith Asset Tech Foundation. These entities allegedly presented themselves as licensed and legitimate financial institutions, despite having no real trading activity.
The SEC stated that the fraud network operated largely through WhatsApp and social media platforms. Investors were invited into group chats featuring so-called financial experts, where trust was built by sharing AI-generated investment tips. According to the SEC, these tips were designed to create the illusion of consistent profits and to persuade investors to open accounts on fake trading platforms.
Fake Licenses and Fictitious Token Offerings
The complaint further alleges that the platforms attempted to gain investors’ trust by falsely claiming they were government-licensed and regulated. In addition, they marketed non-existent security token offerings, promising high returns in order to raise more funds.
The SEC emphasized that both the tokens and the companies supposedly issuing them were entirely fictitious. Investor account balances were merely numbers displayed on a screen. When victims attempted to withdraw funds, they were asked to make additional advance payments under the guise of taxes, commissions, or transaction fees—systematically increasing their losses.
SEC Message: “This Is a Widespread Investment Confidence Scam”
Laura D’Allaird, Chief of the SEC’s Cyber and Emerging Technologies Unit, stated:
“This case highlights a particularly widespread type of investment scam carried out through social media and messaging applications, with devastating consequences for U.S. retail investors.”
The SEC alleges that the fraudulent activities took place between January 2024 and January 2025, with funds transferred overseas through bank accounts and crypto wallets.
SEC Warns Investors
Alongside the lawsuit, the SEC issued a warning urging investors to remain cautious about investment offers received through social media and group chats. The agency encouraged the public to verify individuals and entities using Investor.gov.
This case once again underscores the importance of regulation and oversight in the crypto market and highlights the need for investors to be vigilant against “quick profit” promises circulating on social media. The SEC’s action signals that stricter and broader measures against crypto fraud are likely to continue.