SEC Targets Crypto-AI Scams Worth Over $15 Million

The U.S. Securities and Exchange Commission (SEC) charged four entities in two separate civil cases over alleged cryptocurrency and artificial-intelligence investment scams that collectively misappropriated more than $15 million from retail investors.

The schemes used online platforms, including WhatsApp, to establish relationships with potential investors and promote purported crypto or AI-based investment opportunities. The entities also falsely claimed to be regulated or registered with the SEC.

The SEC alleges the Cryptoaiml entities took more than $12.5 million from over 300 retail investors, while the TSAI entities allegedly misappropriated at least $2.8 million from about 1,715 investors.