SEC sues crypto firms for defrauding investors out of $14M
TL;DR
The SEC has sued multiple crypto firms for allegedly defrauding investors of over $14 million through fake WhatsApp investment clubs using deepfake videos and social media ads.
Source: The Record
Multiple cryptocurrency companies were sued by federal regulators last week for their alleged role in an elaborate investment scam that siphoned more than $14 million from retail investors during Jan. 2024 to Jan. 2025. The Securities and Exchange Commission (SEC) filed charges against Morocoin Tech, Berge Blockchain Technology, Cirkor, AI Wealth, Lane Wealth, AI Investment Education Foundation and Zenith Asset Tech Foundation. SEC lawyers said in a 29-page complaint that the companies ran “investment clubs” on WhatsApp that brought in users from advertisements on social media. Many of the advertisements used deepfake videos of prominent financial professionals and the group chats had fake professors who posted commentary on the economy and stocks. Full Story