SEC Charges Crypto Entities in $14 Million Fraud Scheme
The U.S. Securities and Exchange Commission has filed a complaint against a network of crypto exchanges and investment clubs accused of orchestrating a $14 million fraud. The scheme, operating primarily through WhatsApp, allegedly lured victims with promises of expert-led crypto investments.
Four entities face allegations of masquerading as legitimate investment clubs while promoting sham security token offerings. One defendant, AI Investment Education, held SEC registration as an advisory firm—a veneer of credibility that allegedly facilitated the fraud.
Regulators assert no actual investments occurred. 'This was an elaborate confidence scam,' the SEC stated, noting funds were misappropriated from inception. The case highlights persistent vulnerabilities in crypto's gray markets, where regulatory oversight remains patchwork.
