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The SEC charged Cryptoaiml Ltd., Cryptoaiml Capital Foundation, TSAI Pro Ltd., and TSAI Capital Foundation in the Southern District of New York over two alleged online investment-confidence scams that collectively misappropriated at least $15 million. The defendants allegedly used WhatsApp groups, Facebook, websites, impersonated investment professionals, and false claims of SEC oversight to market purported AI-powered cryptocurrency trading. Cryptoaiml allegedly took more than $12.5 million from over 300 investors using a fake trading platform, fictitious AI signals and fabricated account gains; TSAI allegedly collected more than $2.8 million from about 1,715 investors through nonexistent AI bots and a recruitment-commission program. In both schemes, investors attempting to withdraw funds were allegedly told to pay fraudulent fees, taxes, or verification charges.
The SEC says no genuine AI trading, bots, or represented investment activity existed, and that the groups used falsified regulatory-related materials, including Form D-related claims, to manufacture legitimacy. It seeks injunctions, disgorgement with interest, civil penalties, and activity bars. The actions follow an August SEC case against 38 entities accused of filing false exempt reporting adviser Forms ADV—including fake Colorado addresses, recycled financial and ownership information, and unverifiable audit firms—to appear regulated and lure retail investors; the agency removed those filings and said the FBI assisted through Operation Level Up.
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The SEC filed two civil complaints in the Southern District of New York against Cryptoaiml Ltd., Cryptoaiml Capital Foundation, TSAI Pro Ltd., and TSAI Capital Foundation, alleging the schemes collectively took at least $15 million. The agency removed the entities' Forms D filings and sought injunctions, disgorgement, civil penalties, and relevant activity bars.
TSAI Pro Ltd. and TSAI Capital Foundation allegedly began promoting nonexistent AI trading-bot rentals through its website, WhatsApp chats, and Facebook, offering guaranteed returns and recruitment compensation. The scheme allegedly took more than $2.8 million from investors and imposed purported tax or verification payments on attempted withdrawals.
Cryptoaiml Ltd. and Cryptoaiml Capital Foundation allegedly began an online investment-confidence scheme that used WhatsApp groups, impersonated investment professionals, fictitious AI trading signals, and a fake crypto-trading platform. The scheme allegedly misappropriated more than $12.5 million while displaying fictitious profits and demanding advance fees for withdrawals.
The SEC filed complaints in the District of Colorado against 38 entities for alleged false exempt reporting adviser filings, removed their ERA filings from its website, and sought injunctions, filing prohibitions, and civil penalties. The FBI assisted the SEC through Operation Level Up.
Thirty-eight entities allegedly made materially false Forms ADV filings to appear to be legitimate U.S. investment advisers, using false Colorado addresses, invalid phone numbers, recycled data, and unverifiable audit firms. The filings were allegedly used to lend credibility to investment scams targeting retail investors.
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The U.S. Securities and Exchange Commission (SEC) has charged three purported crypto asset trading platforms—Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc.—along with four investment clubs—AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation—for orchestrating a fraudulent scheme that targeted retail investors through social media. According to the SEC, these entities misappropriated over $14 million by luring victims with advertisements and group chats that promised profits from AI-generated investment tips, ultimately convincing them to invest in fake crypto trading platforms where their funds were stolen. The operation used sophisticated tactics, including the use of automated trading bots to generate massive volumes of fake transactions, creating the illusion of legitimate trading activity. This enforcement action is part of a broader regulatory crackdown on crypto-related fraud, with the SEC imposing a record $4.98 billion in cryptocurrency penalties in 2024 alone. The case highlights the growing threat of social media-driven investment scams and the SEC's commitment to pursuing securities fraud that harms retail investors. The agency's complaint details how the fraudsters built trust in online group chats, posed as financial professionals, and systematically exploited individuals interested in cryptocurrency investments, underscoring the need for heightened vigilance among potential investors and continued regulatory oversight in the digital asset space.
Jun 29, 2026
U.S., Chinese, Thai, and Dubai law enforcement agencies disrupted a major cryptocurrency investment fraud network by raiding at least nine scam centers in Dubai and arresting 276 people across the Middle East and Southeast Asia. The investigation began after the FBI received complaints from American victims who lost millions of dollars in so-called pig-butchering schemes, and authorities said the operation used fake online personas, romance-style social engineering, and fraudulent crypto investment platforms to steal funds from victims worldwide. U.S. prosecutors in San Diego unsealed fraud and money laundering charges against alleged operators **Thet Min Nyi**, **Wiliang Awang**, **Andreas Chandra**, and **Lisa Mariam**, along with two fugitive co-conspirators. Investigators said the network operated through **Ko Thet Company**, **Sanduo Group**, and **Giant Company**, luring victims to bogus platforms including `CoinswiftTrading` and `SwiftLedger`, then moving stolen money through cryptocurrency accounts to obstruct recovery. The Justice Department said the action forms part of its broader Scam Center Strike Force campaign against cyber-enabled fraud that reportedly cost Americans **$16 billion** in the prior year.
Jun 29, 2026
Federal prosecutors in California charged 10 foreign nationals tied to four cryptocurrency market-making firms—**Gotbit, Vortex, Antier, and Contrarian**—for allegedly running wash trading and pump-and-dump schemes that manipulated token prices and trading volume. According to the Justice Department, the FBI and IRS Criminal Investigation carried out an undercover operation in which agents created cryptocurrency tokens and posed as market participants to expose firms allegedly offering illicit services designed to inflate prices and lure retail investors into buying at artificial valuations. Three defendants—**Gleb Gora, Manu Singh, and Vasu Sharma**—were arrested in Singapore and extradited to the United States, where they appeared in federal court in Oakland, while two other defendants, **Antoine Tsao** and **Nemanja Popov**, had already pleaded guilty and been sentenced in related cases. Authorities said the schemes harmed investors in the United States and abroad, seized more than **$1 million** in cryptocurrency, and brought charges of **wire fraud** and **wire fraud conspiracy**, each carrying potential penalties of up to 20 years in prison and a $250,000 fine per count.
Jun 29, 2026