The Securities and Exchange Commission (SEC) has charged seven related entities for allegedly running a sweeping crypto investment scam that extracted at least $14 million from US retail investors.
In a civil complaint filed in the U.S. District Court in Colorado, the SEC says defendants Morocoin Tech Corp, Berge Blockchain Technology, Cirkor, AI Wealth, Lane Wealth, AI Investment and Education Foundation and Zenith Asset Tech Foundation operated fake crypto trading platforms and WhatsApp-based investment clubs that claimed to offer AI-powered trading signals and early access to lucrative token offerings.
According to the SEC, the defendants lured investors with promises of artificial intelligence–generated trading tips, regulatory compliance, and IPO-like “Security Token Offerings,” while directing victims to open accounts on platforms that only simulated trading activity.
The agency says no real trading ever occurred, and the tokens and issuing companies promoted to investors were entirely fictitious.
“This was an elaborate confidence scam through which investors’ assets were never invested as Defendants represented they would be but instead were misappropriated from the start. Defendants further defrauded victims who attempted to withdraw money by demanding that they pay advance fees in order to gain access to any purported funds in their accounts.
All told, from at least January 2024 to January 2025, Defendants acted in concert to misappropriate at least $14 million from US-based retail investors.”
The SEC alleges the defendants violated federal securities laws by making materially false statements about AI trading technology, platform legitimacy, regulatory licenses and investment returns. The regulator also says the defendants secretly funneled investor funds through domestic bank accounts, unhosted crypto wallets and overseas intermediaries.
The agency is seeking permanent injunctions barring future securities law violations, disgorgement of all ill-gotten gains plus prejudgment interest and civil monetary penalties. The SEC has also demanded a jury trial.
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