On December 22, 2025, the SEC announced charges against three purported cryptocurrency trading platforms and four “investment clubs,” alleging they took more than $14 million from U.S. retail investors. According to the SEC’s December 22, 2025 announcement, the scheme allegedly ran on social media ads, group chats, and trading sites that never traded anything. For anyone researching crypto investment scams, the case shows how a modern confidence scam is staged and where it can be spotted. Everything below is an allegation, not a court finding.
SEC Charges Morocoin, Berge Blockchain and Cirkor
The SEC sued Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc. in the U.S. District Court for the District of Colorado, alleging violations of the anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. In the agency’s account, the three sites falsely claimed government licenses, no real trading occurred on them, and the “security token offerings” they promoted came from companies that did not exist. Permanent injunctions, civil penalties and disgorgement with prejudgment interest are sought by the SEC.
Allegations are not verdicts. This is a civil enforcement action, not a criminal prosecution. No defendant has been convicted of anything. According to court records up to mid-April 2026, the clerk filed defaults against all seven defendants in March 2026 after they did not answer, and subsequently the SEC sought entry of default judgment. Default is simply a process, and a judgment has not been obtained yet.
Four Investment Clubs Also Named in the SEC Complaint
The SEC also charged:
- AI Wealth Inc.
- Lane Wealth Inc.
- AI Investment Education Foundation Ltd.
- Zenith Asset Tech Foundation
The SEC alleges that from at least January 2024 to January 2025, these groups ran WhatsApp investment clubs, recruited members through social media ads, and earned trust with supposedly AI-generated investment tips. They allegedly steered members onto the three platforms. The SEC seeks injunctions and civil penalties against them.
How the Alleged $14 Million Crypto Fraud Scheme Worked
According to the complaint, the scheme followed a repeatable script:
- The hook: A social media ad invited people to join an investment club.
- The trust-building: In group chats, people posing as financial professionals shared AI-generated tips.
- The handoff: Members were encouraged to open and fund accounts on Morocoin, Berge, or Cirkor.
- The illusion: The SEC says no trading took place and the token issuers did not exist.
- The exit trap: Victims who tried to withdraw were allegedly told to pay advance fees first.
The SEC says at least $14 million was then funneled overseas through a web of bank accounts and crypto wallets, which is the trail investigators try to follow.
Warning Signs of Fake Cryptocurrency Trading Platforms
Fake crypto exchanges often share these traits:
- Unverified licenses: “Regulated” badges mean little unless a regulator’s own records confirm them. The SEC urges investors to check sellers on Investor.gov.
- Guaranteed returns: No legitimate investment can promise profit.
- Tips from strangers: The SEC advises not trusting group chat advice only.
- Fake dashboards: The on-screen balance is not proof of anything. Withdrawals will show.
- Charges for withdrawals: Being asked to pay upfront to unlock your money is a clear warning sign.
- Requests for more deposits: Pressure to add funds to “verify” an account.
- Unverifiable ownership: No named officers or checkable registration.
Checking ownership, registration, and track record before sending money is the heart of due diligence services, and it can surface many of these red flags before funds move.
What Should Investors Do If They Have Used These Platforms?
Take immediate action:
- Record your transactions: bank account transactions, payments, and card slips.
- Record your communications: emails, screen captures, WhatsApp messages, and websites.
- Record your wallet: address of transactions, transaction ID, date, and amount.
- Contact your financial institutions about recent transfers.
- Report suspected fraud to the SEC’s tip portal, and consider the FBI’s IC3 and the FTC.
- Avoid “recovery” offers that demand upfront fees.
Professional crypto investigation services can help organize this evidence. No one can promise fund recovery.
How Crypto Investigations Can Help Trace Suspicious Transactions
The transfers on public blockchains are all recorded, which makes it possible for investigators to trace how money was transferred. Examples of what analysts do include blockchain transaction analysis, wallet tracking, collecting digital evidence, detecting suspicious transactions, and report writing. Specialized crypto asset tracing services follow funds across wallets and toward exchanges.
Limits matter. A wallet address is not an identity; naming its controller usually requires exchange records or legal process. Funds can be split across many addresses. And detecting transactions does not mean collecting funds, which relies on legal measures, cooperation from outside parties, and whether the funds even still exist.
How FintechLegals Can Help
FintechLegals offers fraud investigation services for people requiring information on any fraudulent investment practices, including crypto transactions. The experts will examine all the evidence, analyze the blockchain activity, and compile a report. FintechLegals has no law-enforcement powers and cannot guarantee recovery. If you sent money to a platform like those in this case, contact FintechLegals to discuss your evidence and options.
FAQ
What is Morocoin Tech Corp., and why did the SEC charge it?
The SEC calls it a purported crypto trading platform that allegedly falsely claimed government licenses, showed fake trading, and misappropriated investor funds. It faces civil fraud charges.
What are the SEC allegations against Berge Blockchain Technology?
The SEC alleges Berge operated as a fake trading platform, promoted nonexistent token offerings, and demanded advance fees when investors tried to withdraw.
Why did the SEC name Cirkor Inc. in the complaint?
Cirkor is the third alleged fake platform. The SEC makes substantially the same allegations against it and seeks disgorgement.
Can cryptocurrency investigations help trace funds connected to suspected investment fraud?
They can often show where funds moved on-chain. They cannot guarantee identifying wallet owners or recovering money.
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