The SEC alleges that three fraudulent exchanges and four investment clubs defrauded U.S. investors of more than $14 million through a trust-building scheme on WhatsApp between January 2024 and January 2025.
The U.S. Securities and Exchange Commission ( SEC ) filed a lawsuit in Colorado District Court on Monday, prosecuting seven entities including Morocoin Tech Corp., Berge Blockchain Technology Co., Ltd., Cirkor Inc., and the AI investment clubs Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation. The defendants are accused of operating a “trust-building investment scheme” with social media and messaging apps Vai a core role.
Laura D'Allaird, head of the SEC's division of cybersecurity and emerging technologies, emphasized that the case reflects a common scam targeting small investors in the U.S. with serious consequences. According to the SEC, the pattern begins with advertisements on popular social media platforms, inviting users to join “investment clubs” operating primarily on WhatsApp. There, impersonators posing as financial experts use the group chats to build trust.
Sophisticated multi-stage scam tactics
After joining the chat rooms, victims receive AI-generated investment suggestions designed to build credibility and simulate stable returns. The clubs then instruct victims to open accounts and deposit money into Morocoin, Berge, and Cirkor – cryptocurrency trading platforms that the SEC has declared completely fraudulent. These platforms claim to provide legitimate, government-licensed trading services, but in reality, no trading activity takes place.
The scheme escalated through the promotion of fraudulent Token Issuance , with neither the issuance nor the issuing company existing. When investors attempted to withdraw their funds, the defendants demanded additional upfront fees, driving up the losses. A total of $14 million was misappropriated and transferred overseas through a network of bank accounts and cryptocurrency wallets.
The SEC also issued an investor warning on Monday, highlighting how scammers frequently exploit social media and group chats to promote fraudulent activities. The agency recommended background checks for anyone soliciting investments through Investor.gov and cautioned against group chats that receive advice from strangers – where investment scams often begin.
