SEC targets alleged WhatsApp scam against retail investors

Core Insights - Investment scams via WhatsApp groups have significantly increased, prompting regulatory actions from authorities like the SEC [1][4] - The SEC has charged several companies and investment clubs for their involvement in a WhatsApp-based crypto scam that defrauded investors of over $14 million [3][6] Group 1: SEC Charges and Allegations - The charged entities include Morocoin Tech Corp., Berge Blockchain Technology Co., Cirkor Inc., and investment clubs such as AI Wealth Inc. and Lane Wealth Inc. [2] - The SEC's complaint details a multi-step fraud scheme that involved social media promotions and manipulation of group chats to gain victims' trust [4][6] - Fraudsters promised profits from AI-generated investment tips, leading victims to invest in fake crypto trading platforms [5][6] Group 2: Operation Details - The fraudulent activities reportedly took place from January 2024 to January 2025, with the defendants operating investment clubs through WhatsApp [6] - Victims were directed to open accounts on fake trading platforms that falsely claimed to have government licenses [6][7] - The platforms offered fictitious "Security Token Offerings" and when investors sought to withdraw funds, they were asked to pay "advance fees," exacerbating their losses [7] Group 3: Financial Misappropriation - The SEC claims that the stolen funds were funneled overseas through a network of bank accounts and crypto wallets [7]