SEC charges $14 million crypto investment scam targeting social media users
The SEC charged seven entities for running a $14 million crypto investment scam using social media and fake trading platforms.Summary
The U.S. Securities and Exchange Commission (SEC) filed a complaint against three purported crypto asset trading platforms (Morocoin Tech Corp., Berge Blockchain Technology Co., Ltd., and Cirkor Inc.) and four investment clubs for allegedly running an online investment confidence scam that defrauded investors of over $14 million between January 2024 and January 2025.
The scheme heavily relied on social media and messaging apps like WhatsApp, where fraudsters posed as financial professionals in group chats to build trust using AI-generated tips simulating profits. Victims were then directed to fund accounts on the three fake crypto trading platforms, which falsely claimed to offer government-licensed services. The scam further involved promoting fictitious security token offerings, and when victims tried to withdraw funds, they were demanded additional advance fees.
The SEC stated that the misappropriated $14 million was routed overseas through bank accounts and crypto wallets. In connection with the charges, the SEC also issued an investor alert warning the public about fraudsters using social media and group chats to promote investment scams.
(Source：The Block)