The post SEC Uncovers $14M Crypto Scam That Lured Investors Through WhatsApp Groups appeared first on Coinpedia Fintech News U.S. regulators have cracked down The post SEC Uncovers $14M Crypto Scam That Lured Investors Through WhatsApp Groups appeared first on Coinpedia Fintech News U.S. regulators have cracked down

SEC Uncovers $14M Crypto Scam That Lured Investors Through WhatsApp Groups

2025/12/24 18:46
4 min read
Crypto Scam

The post SEC Uncovers $14M Crypto Scam That Lured Investors Through WhatsApp Groups appeared first on Coinpedia Fintech News

U.S. regulators have cracked down on a large crypto scam that used social media and messaging apps to lure unsuspecting investors. The Securities and Exchange Commission (SEC) has charged seven entities for allegedly running a coordinated scheme that siphoned more than $14 million from retail investors across the United States.

According to the SEC, the operation wasn’t built around real crypto trading at all. Instead, it relied on trust-building tactics, fake platforms, and misleading promises designed to exploit people looking for investment opportunities online.

How the Scam Reached Victims

The scheme reportedly ran from early 2024 through January 2025 and began with targeted ads on popular social media platforms. These ads encouraged users to join exclusive “investment clubs” that promised education, AI-powered trading strategies, and consistent returns.

Once users joined, communication shifted to WhatsApp group chats. Inside these groups, scammers posed as experienced financial professionals, gradually building credibility and confidence. Members were shown polished messages and so-called AI-generated trading tips, creating the illusion that the group had access to advanced investment tools.

Fake Platforms and False Profits

As trust grew, victims were instructed to open accounts on what appeared to be legitimate crypto trading platforms named Morocoin, Berge, and Cirkor. The SEC says these platforms were completely fake. No real trading activity ever took place, despite claims that the services were licensed and government-approved.

To deepen the deception, the groups promoted bogus security token offerings linked to fictitious companies. Investors believed they were participating in early-stage crypto opportunities when, in reality, their money was simply being funneled away.

  • Also Read :
  •   Crypto Hack: CertiK Warns After $2.3 Million Stolen Fund Sent To Tornado Cash
  •   ,

The Trap Tightens During Withdrawals

Problems surfaced when investors tried to withdraw their funds. Instead of processing withdrawals, the scammers demanded additional “fees” or charges, claiming they were required to unlock profits or complete transactions. These extra payments only increased investor losses, with no chance of recovery.

The SEC alleges that the stolen funds were moved overseas through a network of bank accounts and crypto wallets, making recovery even more difficult.

SEC Warns of a Growing Trend

The regulator described the case as a textbook example of an “investment confidence scam,” a tactic that is becoming increasingly common in the digital asset space. SEC officials emphasized that fraudsters are exploiting social media, private group chats, and the hype around AI and crypto to appear legitimate.

Alongside the charges, the SEC issued a fresh warning urging investors to be cautious of unsolicited investment advice, especially in messaging apps. The agency advises verifying anyone offering investment opportunities through official channels like Investor.gov.

The case serves as a reminder that if an investment opportunity relies heavily on private chats, guarantees quick profits, or asks for extra fees to access funds, it’s often a major red flag.

Never Miss a Beat in the Crypto World!

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

bell icon Subscribe to News

FAQs

What is an investment confidence scam in crypto?

It’s a scam where fraudsters build trust over time using fake success stories and guidance, then persuade victims to invest on bogus platforms.

Are legitimate crypto investments promoted through private group chats?

Rarely. Legitimate firms don’t rely on WhatsApp or Telegram groups for investments or pressure users with time-limited offers.

What are common red flags of fake crypto platforms?

Guaranteed returns, no verifiable license, withdrawal fees, unclear ownership, and pressure to reinvest are strong warning signs.

What should investors do if they suspect a crypto scam?

Stop sending funds immediately, document all interactions, and report the case to regulators or cybercrime authorities promptly.

Market Opportunity
Union Logo
Union Price(U)
$0.001135
$0.001135$0.001135
-2.74%
USD
Union (U) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Watch Out: Large Token Unlocking Events in 27 Altcoins This Week – Here’s the Day-by-Day, Hour-by-Hour List

Watch Out: Large Token Unlocking Events in 27 Altcoins This Week – Here’s the Day-by-Day, Hour-by-Hour List

The post Watch Out: Large Token Unlocking Events in 27 Altcoins This Week – Here’s the Day-by-Day, Hour-by-Hour List appeared on BitcoinEthereumNews.com. Watch
Share
BitcoinEthereumNews2026/02/16 03:56
Foreigner’s Lou Gramm Revisits The Band’s Classic ‘4’ Album, Now Reissued

Foreigner’s Lou Gramm Revisits The Band’s Classic ‘4’ Album, Now Reissued

The post Foreigner’s Lou Gramm Revisits The Band’s Classic ‘4’ Album, Now Reissued appeared on BitcoinEthereumNews.com. American-based rock band Foreigner performs onstage at the Rosemont Horizon, Rosemont, Illinois, November 8, 1981. Pictured are, from left, Mick Jones, on guitar, and vocalist Lou Gramm. (Photo by Paul Natkin/Getty Images) Getty Images Singer Lou Gramm has a vivid memory of recording the ballad “Waiting for a Girl Like You” at New York City’s Electric Lady Studio for his band Foreigner more than 40 years ago. Gramm was adding his vocals for the track in the control room on the other side of the glass when he noticed a beautiful woman walking through the door. “She sits on the sofa in front of the board,” he says. “She looked at me while I was singing. And every now and then, she had a little smile on her face. I’m not sure what that was, but it was driving me crazy. “And at the end of the song, when I’m singing the ad-libs and stuff like that, she gets up,” he continues. “She gives me a little smile and walks out of the room. And when the song ended, I would look up every now and then to see where Mick [Jones] and Mutt [Lange] were, and they were pushing buttons and turning knobs. They were not aware that she was even in the room. So when the song ended, I said, ‘Guys, who was that woman who walked in? She was beautiful.’ And they looked at each other, and they went, ‘What are you talking about? We didn’t see anything.’ But you know what? I think they put her up to it. Doesn’t that sound more like them?” “Waiting for a Girl Like You” became a massive hit in 1981 for Foreigner off their album 4, which peaked at number one on the Billboard chart for 10 weeks and…
Share
BitcoinEthereumNews2025/09/18 01:26
Fed Chair Nominee Warsh Sparks Volatility in Bitcoin as Employment Data Fuel Uncertainty

Fed Chair Nominee Warsh Sparks Volatility in Bitcoin as Employment Data Fuel Uncertainty

The Fed nominee's approach and historic job revisions have unsettled cryptocurrency markets, especially Bitcoin. Major downward adjustments in job statistics challenge
Share
Coinstats2026/02/16 03:10