The Securities and Exchange Commission (SEC) recently filed charges in the United States District Court for the District of Colorado against crypto asset trading platforms alleged of defrauding retail investors out of more than $14 million via an elaborate investment confidence scam.
The defendants, Morocoin Tech Corp., Berge Blockchain Technology Co., Cirkor, AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation, were charged with violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.
“This matter highlights an all-too-common form of investment scam that is being used to target U.S. retail investors with devastating consequences,” Laura D’Allaird, SEC Cyber and Emerging Technologies Unit chief said. “Our complaint alleges a multi-step fraud that attracted victims with ads on social media, built victims’ trust in group chats where fraudsters posed as financial professionals and promised profits from AI-generated investment tips, then convinced victims to put their money into fake crypto asset trading platforms where it was misappropriated. Fraud is fraud, and we will vigorously pursue securities fraud that harms retail investors.”
The SEC seeks permanent injunctions and civil penalties and disgorgement with prejudgment interest against Morocoin, Berge and Cirkor.