US SEC Sues Three Fake Crypto Exchanges and Four Investment Clubs in $14M WhatsApp AI Trading Scam
The U.S. Securities and Exchange Commission filed a civil complaint alleging a coordinated $14M fraud involving three purported crypto exchanges — Morocoin, Berge and Cirkor — and four affiliated investment clubs. Defendants used social-media ads to recruit retail investors into WhatsApp groups, posed as finance professionals, and promoted AI-driven trading tips and so-called “security token offerings.” Victims were directed to deposit funds into the fake platforms and tokens. The complaint alleges fabricated government licenses, falsified trading records and a withdrawal-fee scam that blocked redemptions unless victims paid up-front fees. The SEC says funds were siphoned overseas via a complex chain of bank accounts and crypto wallets. Regulators seek permanent injunctions, civil penalties and disgorgement. For traders: this case underscores persistent fraud risks in social-media marketing channels, increases enforcement focus on chat-based solicitations, and may raise due-diligence standards for platforms claiming AI trading signals or licensed status. Primary keywords: SEC, crypto fraud, fake exchanges, WhatsApp scam, AI trading.
Bearish
The enforcement action targets fraud involving purported exchanges and tokens, not a major existing blockchain or listed coin; however, the news is bearish for broad retail sentiment and trust in small/unknown platforms and AI-trading products. Short-term impact: increased withdrawal pressure and sell-offs on minor tokens associated with the named platforms or with projects marketed through similar channels, and margin of caution among retail traders leading to lower liquidity in related markets. Mid-to-long term: stronger regulatory scrutiny and higher compliance/marketing costs for small exchanges and token issuers, which could reduce speculative inflows and slow product launches that rely on social-media recruitment. Overall this reduces demand and increases perceived risk for tokens tied to these schemes and for unvetted platforms, producing a generally bearish effect on the affected niches while leaving major liquid assets (BTC, ETH) largely insulated.