SEC Cracks Down on Alleged $15M Crypto-AI Investment Scams

The US Securities and Exchange Commission (SEC) has charged four entities over two alleged crypto and AI investment scams that raised more than $15 million from investors.

The agency filed the cases in Manhattan on September 29, alleging that the groups used WhatsApp and Facebook to attract investors with promises of high returns.

Cryptoaiml allegedly raised over $12.5 million from more than 300 investors by promoting AI-generated trading signals through WhatsApp, claiming a 98% accuracy rate despite no actual trading occurring.

TSAI allegedly raised at least $2.8 million from 1,715 investors by offering AI trading bots priced between $100 and $500,000, with deposits being routed into consolidation wallets.