A global network of fake crypto platforms and AI-themed investment clubs allegedly scammed U.S. investors out of $14 million through a complex scheme involving social media ads, WhatsApp groups and bogus trading sites, according to the SEC.
Key Takeaways:
- SEC charged seven entities with running a fake investment scheme using WhatsApp and AI-generated tips.
- The scam involved fraudulent crypto platforms and phony security token offerings.
- No real trading occurred and investors were misled by fake account data and deepfake endorsements.
- Over $14 million was funneled through international banks and unhosted crypto wallets.
What Happened?
From January 2024 to January 2025, scammers posed as financial experts in WhatsApp groups to lure unsuspecting U.S. investors into what the SEC called a “multi-step fraud.” They used AI-generated trading tips, fake professors and manipulated screenshots of earnings to convince victims to deposit funds into sham crypto platforms. The SEC is now suing the companies behind this elaborate scam.
🚨 CRYPTO SCAM ALERT – IMPORTANT INFORMATION🚨
— n1k0lenko (@devWithEdge) December 23, 2025
This post is intended to raise awareness about a repeated crypto scam pattern carried out by the same individuals through multiple short-term projects and token launches.
⚠️ Scam Overview
There are two individuals who repeatedly… pic.twitter.com/1lxmkk4QVp
A Sophisticated Web of Deception
The Securities and Exchange Commission filed a complaint in federal court in Colorado against a group of seven entities, including Morocoin Tech, Berge Blockchain Technology, Cirkor, AI Wealth, Lane Wealth, AI Investment Education Foundation and Zenith Asset Tech Foundation. These firms allegedly worked together to create the illusion of legitimate crypto investment opportunities.
How the Scam Worked:
- Victims were recruited through social media ads, including deepfake videos of financial professionals
- Ads led users to join WhatsApp “investment clubs”, where fake financial experts promoted AI-based tips
- Users were urged to create accounts on fraudulent crypto platforms: Morocoin, Berge and Cirkor
- These platforms displayed fake price charts, balances and trading activity
- Victims were also offered nonexistent “Security Token Offerings” allegedly backed by futuristic tech firms
- A prominent example was “NeuralNet,” a made-up company promoting brain-computer interfaces and humanoid robots
The SEC says no trades ever occurred. Instead, the scammers created an interface mimicking real platforms and fabricated everything from gains to token sales.
Trapped and Drained
Once investors deposited fiat or crypto assets, they encountered withdrawal barriers. They were asked to pay advance fees to access their funds, which were never returned. These funds were then funneled into:
- At least 27 domestic bank accounts.
- Overseas banks in China, Hong Kong, Indonesia and Southeast Asia.
- Unhosted crypto wallets beyond the reach of third-party exchanges.
In one example, a single investor wired over $1.4 million to a bank in Indonesia. Another sent seven payments totaling more than $1 million to accounts in China and Hong Kong.
Victims Speak Out
Several group members later posted warnings online and reported the scam to authorities. At least one victim told local police they had lost $156,000, while others described borrowing money to invest based on false promises. Regulators in Washington and Arkansas confirmed receiving multiple complaints about the scam.
IEF Foundation and Berge Blockchain SCAM
byu/Fine_Feeling6924 inCryptoScams
By the time the SEC filed charges, most company websites had vanished and online traces were minimal.
Part of a Larger Crackdown
This case reflects a broader effort by U.S. agencies to fight international cyber scams. The SEC’s action follows the recent launch of a multi-agency strike force targeting fraud compounds in Myanmar, Cambodia and Laos. Just weeks ago, the Justice Department shut down a website used by scam centers in Myanmar that mimicked legitimate trading platforms.
“This matter highlights an all-too-common form of investment scam that is being used to target U.S. retail investors with devastating consequences,” said Laura D’Allaird, head of the SEC’s Cyber and Emerging Technologies Unit. She emphasized the growing use of AI claims to trick victims and praised the complaint’s role in exposing these tactics.
CoinLaw’s Takeaway
I’ve seen a lot of crypto fraud stories, but this one takes manipulation to a new level. Deepfake videos, fake professors, AI investment tips and phony token offerings all bundled into WhatsApp group chats? It’s no surprise people were fooled. In my experience, scammers are evolving faster than ever, using high-tech tools to build trust quickly and vanish just as fast. This is why due diligence is critical. Always verify licenses and avoid platforms that push urgent or exclusive offers. If it sounds too good to be true, it probably is.
