U.S. Securities and Exchange Commission Cracks Down on AI-themed Crypto Fraud

BlockBeats News, December 24th. According to financefeeds, the U.S. Securities and Exchange Commission has charged three so-called cryptocurrency exchanges and four investment clubs with coordinated fraud, allegedly defrauding retail investors of at least $14 million. The regulator stated that the action relied on social media ads, private messaging apps, and fake trading interfaces to deceive victims into believing they were investing through legitimate crypto channels.

The specified defendants in the complaint include Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc., as well as the investment clubs AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Limited, and Zenith Asset Technology Foundation. The SEC stated that the scheme ran from January 2024 to January 2025, targeting retail investors in the U.S.

This case highlights a form of fraud that combines traditional scams with digital tools, leveraging familiar social platforms and sophisticated interfaces to create the illusion of a professional investment operation.