CryptoSEC Cracks Down On 7 In $14M Scam Amid...

SEC Cracks Down On 7 In $14M Scam Amid Record Wave Of Bitcoin Filings

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Is the Bitcoin price in danger heading into 2026? The US Securities and Exchange Commission has charged three crypto trading platforms and four affiliated investment clubs for allegedly defrauding American retail investors out of roughly $14 Mn.

This crackdown is landing just as Washington is finally building a clearer regulatory perimeter around digital assets.

According to the SEC, Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc. worked in tandem with AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation to run what regulators describe as an “investment confidence scam.” The targets were everyday investors pulled in through WhatsApp groups, social media ads, and promises of AI-powered trading insights.

Laura D’Allaird, Chief of the SEC’s Cyber and Emerging Technologies Unit, was blunt:

“This matter highlights an all-too-common form of investment scam being used to target US retail investors with devastating consequences.”

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Between January 2024 and January 2025, the alleged operators funneled victims into fake investment clubs, then nudged them to deposit funds onto what appeared to be licensed crypto trading platforms. The platforms were not real, however, and the trades never happened. The promised Security Token Offerings did not exist.

When investors tried to withdraw, the scammers demanded additional fees, then blocked access entirely. The SEC estimatesat least $14 Mn was siphoned off and routed overseas through banks and crypto wallets.

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(Source: SolidusLabs)

I have covered enough of these cases to know the script rarely changes. What also doesn’t change is while these attacks plague DeFi, they never come through Bitcoin itself.

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According to The Block’s Data and Insights newsletter, blockchain-related mentions in SEC filings surged to roughly 8,000 by August 2025 and stayed elevated through November. Bitcoin-related references dominated, reflecting the explosion of spot Bitcoin ETF filings after approvals in early 2024.

CoinGecko data shows Bitcoin remains the focal point for institutional crypto exposure, while DeFi Llama reports that total value locked has stabilized in the tens of billions, signaling consolidation rather than speculative excess. The upshot is stay safe out there this Christmas season! Scams still plague this industry.

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Key Takeaways

  • Is the Bitcoin price in danger heading into 2026? The US Securities and Exchange Commission has charged three crypto trading platforms …
  • According to The Block’s Data and Insights newsletter, blockchain-related mentions in SEC filings surged to roughly 8,000 by August 2025.

The post SEC Cracks Down On 7 In $14M Scam Amid Record Wave Of Bitcoin Filings appeared first on 99Bitcoins.





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