U.S. regulators are cracking down on a coordinated crypto scam that used social media and messaging apps to trick retail investors out of millions.

The Securities and Exchange Commission has filed charges against seven entities accused of running what it calls an “investment confidence scam” that stole at least $14 million from victims between January 2024 and January 2025.

The case highlights how modern crypto frauds often rely more on psychological manipulation and polished digital presentations than technical tricks.

How the Scam Worked

According to the SEC, the operation started with targeted ads on social media, inviting users to join exclusive “investment clubs” on.

These groups were marketed as communities for learning and high-return opportunities.

Once inside, scammers posed as experienced financial professionals or professors, sharing fake success stories, doctored trading screenshots, and claims of AI-powered strategies.

The goal: gain trust before asking for money.

Fake Platforms and Offerings

Victims were then directed to open accounts on three supposed crypto trading platforms — Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc.

The SEC says none of these platforms were real, and they falsely claimed government approval or licensing.

The scammers also offered fake “security token offerings,” presented as tokenized equity in well-known companies. In reality, the tokens and companies didn’t exist.

The Withdrawal Trap

Problems became clear when victims tried to withdraw funds. Operators demanded additional payments for “administrative fees,” taxes, or compliance costs.

No withdrawals were ever processed, trapping investors in a cycle of losses.

The stolen money was reportedly moved through a complex web of domestic banks, overseas transfers, and unhosted crypto wallets, making recovery more difficult.

Entities Named

The SEC’s complaint, filed in Colorado federal court, targets seven entities connected to the scam:

Crypto Platforms:

Morocoin Tech Corp.

Berge Blockchain Technology

Cirkor Inc.

Investment Clubs:

AI Wealth Inc.

Lane Wealth Inc.

AI Investment Education Foundation Ltd.

Zenith Asset Tech Foundation

The SEC is seeking permanent injunctions, civil penalties, and recovery of the stolen funds, along with interest.