SEC filings reveal the multi-million dollar trap hiding inside ‘exclusive’ WhatsApp crypto investment clubs

The SEC charged three purported crypto trading platforms (Morocoin, Berge, Cirkor) and four investment clubs with an alleged $14 million fraud targeting US retail investors between January 2024 and January 2025. The scheme followed a five-step playbook: advertising on social media and running 'investment clubs' on WhatsApp fronted by 'professor' personas; using AI-generated signals and fake screenshots to build trust; funneling victims to fake, supposedly licensed trading platforms; pushing fictitious Security Token Offerings (STOs); and finally, demanding advance fees for 'taxes' or 'loan repayments' to unlock withdrawals, a classic advance-fee fraud. The SEC highlighted that this case exemplifies how scammers leverage AI for convincing fake content and use encrypted chats to create high-pressure funnels. Regulators warn that legitimate firms deduct fees from proceeds, unlike this scheme which demanded upfront payments to access victims' own money. The SEC is seeking injunctions and penalties, and advises investors to verify credentials on Investor.gov and watch for red flags like guaranteed returns and pressure to send crypto to unknown wallets.

(Source：CryptoSlate)