The post SEC Charges WhatsApp Crypto AI Scams Allegedly Taking Over $15.3M appeared on BitcoinEthereumNews.com.
Key Takeaways Cryptoaiml allegedly displayed fictitious trading profits to investors. TSAI allegedly promoted nonexistent AI bots and recruitment rewards. The SEC removed Forms D tied to the entities’ regulatory claims. SEC Alleges More Than $15.3 Million Taken From Investors Investors who transferred funds to the two online programs allegedly encountered fake returns and false assurances of SEC oversight. In fraud charges filed Sept. 29, the Securities and Exchange Commission (SEC) named Cryptoaiml Ltd., Cryptoaiml Capital Foundation, TSAI Pro Ltd., and TSAI Capital Foundation. The agency alleges that the two schemes misappropriated more than $12.5 million and $2.8 million, respectively. It says the entities were likely operated by individuals overseas. The two complaints describe different tactics, but each alleges that the entities invoked SEC authority to gain trust. “Although the methods used to bilk innocent investors in these fraudulent investment scams varied, the goal was the same – promise potential investors outsized returns, claim that they were legitimate entities regulated by the SEC, and then steal their money,” said David Woodcock, director of the agency’s Division of Enforcement. Cryptoaiml allegedly built trust in WhatsApp groups by impersonating investment professionals and sharing supposed AI-generated trading signals from at least August 2024 through March 2025. The approach resembles crypto group chat tactics flagged by the SEC, including claims of expert guidance that lead investors to purported trading platforms. Fake Profits, Withdrawal Fees, and Bots That Did Not Exist Investors who followed Cryptoaiml’s directions allegedly transferred crypto assets to a platform that displayed profits but conducted no trades, according to the SEC. Some also signed investment management agreements that were represented to be legitimate. When investors tried to withdraw their money, the entities allegedly claimed their accounts were frozen and demanded advance fees. Fake crypto trading platforms and unexpected payment demands are recurring features…