TechFlow, December 24 — According to the U.S. Securities and Exchange Commission (SEC), the SEC has filed lawsuits against three virtual asset trading platforms—Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc.—and four investment clubs, accusing them of defrauding retail investors through social media of more than $14 million.
These entities used social media advertisements to lure victims into WhatsApp investment groups, falsely claiming to offer AI-generated investment advice and inducing investors to open accounts on fake cryptocurrency trading platforms and invest in non-existent "security token offerings." Laura D'Allaird, head of the SEC’s Cyber and Emerging Technologies Unit, stated that this is a common form of fraud targeting retail investors in the United States.
According to the complaint, the defendants carried out the fraud between January 2024 and January 2025, and required investors to pay upfront fees when they attempted to withdraw funds. The SEC has filed the lawsuit in the U.S. District Court for the District of Colorado, seeking permanent injunctions and civil penalties against all defendants.
