The SEC is cracking down on AI-themed encryption fraud.

BlockBeats news, on December 24, reported by financefeeds, the SEC has charged three so-called encryption trading platforms and four investment clubs, accusing them of coordinated fraud, having defrauded retail investors of at least $14 million. The regulatory agency stated that the operation relied on social media advertising, private messaging applications, and fake trading interfaces to deceive victims into believing they were investing through legitimate encryption channels. The defendants named in the complaint include Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc., as well as investment clubs AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Technology Foundation. The SEC stated that the scheme lasted at least from January 2024 to January 2025, targeting investors who are retail investors based in the United States. This case highlights a form of fraud that combines traditional scams with digital tools, creating an illusion of professional investment operations using familiar social platforms and sophisticated interfaces.