TL;DR
- The SEC uncovered a $14 million cryptocurrency scam that used WhatsApp groups and fake trading platforms to deceive U.S. investors.
- The scheme leveraged AI trading hype and misleading promises to build trust, with platforms like Morocoin, Berge, and Cirkor being entirely fictitious.
- Investors faced additional withdrawal fees, highlighting the importance of verifying unsolicited crypto investment offers.
U.S. regulators have taken action against a major cryptocurrency scam that defrauded retail investors through social media and messaging apps. The Securities and Exchange Commission (SEC) charged seven entities accused of orchestrating a coordinated scheme that collected over $14 million from unsuspecting investors nationwide. The operation had no legitimate trading activity and was designed purely to exploit trust, preying on individuals with varying levels of experience in crypto markets.
How The Scam Reached Investors
The scheme ran from early 2024 through January 2025. It began with targeted ads on social media, inviting users to join exclusive “investment clubs” promising AI-driven trading strategies and consistent returns. Once members joined, communication moved to WhatsApp groups where scammers posed as financial experts. Polished messages, fake AI-generated trading tips, and staged success stories created the impression of a sophisticated trading network, convincing some investors to deposit significant sums quickly.
Victims were asked to open accounts on platforms like Morocoin, Berge, and Cirkor, which appeared legitimate but were completely fabricated. The SEC says no real trades took place, though investors were led to believe they were using licensed crypto services. Several participants also received misleading reports showing supposed profits, further deepening the illusion.
Fake Platforms And Withdrawal Barriers
As trust grew, the scammers offered bogus security token offerings linked to non-existent companies. When investors attempted withdrawals, additional “fees” were demanded to access funds or release profits, further increasing losses. According to the SEC, the stolen funds were moved overseas through multiple bank accounts and crypto wallets, complicating recovery. Authorities are now working with international partners to trace the funds and pursue legal actions.
The case illustrates a growing trend in the cryptocurrency space: fraudsters exploiting private messaging apps, social media, and AI hype to appear credible. While regulators crack down on scams, legitimate crypto projects continue to operate transparently with verifiable records, emphasizing real-world utility and investor protection.
The SEC urges investors to approach unsolicited investment opportunities cautiously, especially through messaging apps. Offers relying heavily on private chats, promising fast returns, or demanding extra fees should be treated as warning signs. Verifying claims through official sources like Investor.gov remains essential for safe crypto investing.
