SEC strikes hard: Investigates three fraudulent encryption platforms, involving an amount of 14 million USD.

[Block Rhythm] The U.S. Securities and Exchange Commission has recently filed a lawsuit against a large-scale encryption investment fraud case, involving at least $14 million. This action targets three so-called encryption trading platforms and four investment clubs, which are accused of coordinating fraud, with a focus on U.S. retail investors.

The accused platforms include Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc., while the associated investment clubs are AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Technology Foundation. According to the SEC's indictment, this scam persisted from January 2024 to January 2025.

These individuals employ a highly skilled modus operandi—using social media advertisements, private messaging applications, and meticulously designed fake trading interfaces to create the illusion of a legitimate and legal investment channel. Victims are led to believe that they are investing through legitimate encryption channels, unaware that they have already fallen into a carefully designed trap.

This case exposes a phenomenon: criminals are combining traditional scams with digital tools, leveraging people's trust in social platforms and the allure of sophisticated interface design to create an investment facade that seems professionally operated. For investors, this is a clear warning—no matter how complex or professional the presentation, it cannot replace genuine due diligence.