The U.S. Securities and Exchange Commission charged four entities over two alleged crypto and artificial-intelligence investment scams that raised more than $15 million from investors.
The SEC filed the cases in Manhattan on Sept. 29, alleging that the groups used WhatsApp and Facebook to attract investors with promises of high returns. The agency said the operators falsely claimed their investments were overseen by the SEC and used fabricated documents to appear legitimate.
Cryptoaiml Allegedly Used Fake AI Signals
Cryptoaiml allegedly raised more than $12.5 million from over 300 investors by promoting AI-generated trading signals through WhatsApp. The SEC said the company claimed its signals were 98% accurate, although no actual trading occurred and reported profits were allegedly fabricated.
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Investors later faced frozen accounts and withdrawal problems, according to the agency.
TSAI Allegedly Sold Fake Trading Bots
TSAI allegedly raised at least $2.8 million from 1,715 investors by offering AI trading bots priced between $100 and $500,000. The SEC said the program also offered payments for referring new investors.
The agency alleges the bots did not exist and that deposits were routed into consolidation wallets. Investors seeking withdrawals were allegedly asked to pay additional verification fees or taxes.
The SEC is seeking court orders to halt the alleged schemes, recover investor funds and impose financial penalties. The allegations have not been adjudicated by a court.