Here’s the latest major enforcement action where the U.S. Securities and Exchange Commission (SEC) cracked down on a crypto fraud ring:

ICIJ

Bitget

Crypto giants moved billions linked to money launderers, drug traffickers and North Korean hackers

Spain Cracks Down on €460M Crypto Fraud Ring

November 25

July 25

📌 What the SEC Action Involves

Who was charged? The SEC filed a civil enforcement complaint against:

Three purported crypto asset trading platforms: Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc.

Four so-called “investment clubs”: AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation. �

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What did they do? According to the SEC’s complaint:

The fraud ring targeted U.S. retail investors using social media ads and WhatsApp group chats to lure people into fake crypto investment communities.

Operators posed as “financial professionals,” deployed AI-generated tips and deepfake videos, and guided investors toward bogus trading platforms that claimed government licensing.

Victims were steered to deposit funds into these platforms (Morocoin, Berge, Cirkor), which never facilitated real trading.

In total, investors were defrauded of more than $14 million, with funds routed overseas through bank accounts and crypto wallets. �

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How the scam worked (details):

Scammers used investment club WhatsApp groups to build trust and create the illusion of profitable activity.

Once enough money was deposited, victims trying to withdraw their funds were told to pay extra “taxes” or “verification fees” — a classic “pig butchering” confidence scheme.

Funds were misappropriated rather than invested. �

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Legal claims and SEC goals

The SEC charged the defendants with violating anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.

The agency is seeking permanent injunctions, civil penalties, and disgorgement with interest against the accused.

As part of broader investor protection efforts, the SEC also issued warnings about social-media-to-messaging-app scams. �

SEC

📊 Broader Context

This crackdown is part of an ongoing trend in 2025 where regulators globally have been cracking down on crypto-related fraud and illicit activity:

Spain recently dismantled a €460 million crypto fraud ring with more than 5,000 victims. �

Bitget

Major investigations continue to reveal how crypto platforms are used for money laundering and criminal transactions. �

ICIJ

If you’d like, I can also provide tips on how to spot and avoid crypto scams like this one.

#SEC. #CryptoFraud #CryptoScam #InvestorAlert #FinancialCrime