SEC sues major encryption fraud case: three platforms and four institutions involved in a $14 million eyewash.

[BitPush] The U.S. SEC recently filed a lawsuit against a cross-platform fraud case involving three cryptocurrency trading platforms and four investment institutions, accused of colluding to commit fraud and illegally raising at least $14 million.

It is reported that this scam gang became active starting in January 2024. They first set traps on social media, claiming to possess advanced AI trading strategies, attracting investors into WhatsApp groups. They then induced these investors to open accounts on platforms such as Morocoin, Berge, and Cirkor.

The problem is that these so-called trading platforms are completely fake. The account balances and transaction records that users see are all illusions—the system only displays virtual numbers, and there are no real transactions happening in the background. When victims want to withdraw their money, the scammers change their story: they claim that taxes, processing fees, and unfreezing fees are required… excuse after excuse, and in the end, investors find themselves with nothing.

Laura D'Allaird, head of the SEC's cyber unit, was clear: “Fraud is fraud, no matter what technological disguise it wears.” The case has been submitted to the U.S. District Court for Colorado, where the SEC is seeking a permanent injunction against the defendants and civil penalties.

This case serves as a reminder to encryption investors: there is no such thing as a free lunch, and the so-called “AI Shen Ce” is often just a trap. Before any fund transfers, it is essential to verify the true identity and regulatory background of the platform.