U.S. regulators have charged seven entities with securities fraud over a year-long scheme that duped individual investors through fake cryptocurrency platforms and WhatsApp-based investment groups. The defendants allegedly used social media posts to lure victims into WhatsApp chats, where they posed as financial experts and touted AI-generated investment and trading recommendations to gain trust.
Investors were urged to open accounts on platforms allegedly operated by Morocoin, Berge, and Cirkor, claims that these platforms were government-licensed and authorized. The groups promoted fake Security Token Offerings that appeared linked to legitimate companies, but neither the firms nor the tokens existed, and no actual trading occurred. When victims sought to withdraw funds, they were pressed for additional upfront fees.
The SEC states that investor money was moved across multiple bank accounts and crypto wallets before being funneled offshore. This case underscores how AI technology is increasingly exploited in crypto fraud, including deepfake videos that mimic well-known figures and forged platform interfaces designed to resemble legitimate services.
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