SEC Charges Three "Fake" Crypto Trading Platforms with Scheme Targeting Retail Investors on Social Media

SEC Charges Three Purported Crypto Asset Trading Platforms and Four Investment Clubs with Scheme That Targeted Retail Investors on Social Media

The Securities and Exchange Commission today filed charges against purported crypto asset trading platforms Morocoin Tech Corp., Berge Blockchain Technology Co. Ltd., and Cirkor Inc. and investment clubs AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation alleging that they defrauded retail investors out of more than $14 million in an elaborate investment confidence scam. […]

According to the complaint, from at least January 2024 to January 2025, AI Wealth, Lane Wealth, AIIEF, and Zenith operated so-called investment clubs using WhatsApp and solicited investors to join the clubs with ads on social media. The clubs gained investors’ confidence with supposedly AI-generated investment tips before luring investors to open and fund accounts on purported crypto asset trading platforms Morocoin, Berge, and Cirkor, which falsely claimed to have government licenses, as alleged. The investment clubs and platforms then allegedly offered “Security Token Offerings” that were purportedly issued by legitimate businesses. In reality, no trading took place on the trading platforms, which were fake, and the Security Token Offerings and their purported issuing companies did not exist, according to the complaint. When investors tried to withdraw their funds, the complaint alleges that the defendants further defrauded victims by demanding that they pay advance fees. In all, the defendants misappropriated at least $14 million from U.S.-based retail investors and funneled those funds overseas through a web of bank accounts and crypto asset wallets, as alleged.

How Charlie Javice’s Legal Fees Hit $74 Million: Gummy Bears and Star Lawyers

Ever since JPMorgan Chase disclosed that Charlie Javice’s legal team had sent the bank $74 million in legal bills for her criminal trial, the question has been how they racked up such eye-popping expenses. The answer apparently includes $530 in gummy bears.

Lawyers for JPMorgan Chase released a detailed list of Javice’s supposed legal expenses on Monday, which included everything from dozens of hotel upgrades to a tower of seafood at a restaurant.

Javice was convicted of defrauding the bank when she sold her educational startup, Frank, for $175 million to JPMorgan in 2021. But in a twist, the bank has been picking up the legal bills for Javice and Olivier Amar, another executive, because of a clause in that deal that said JPMorgan would shoulder all associated costs in the event of a dispute.

Crypto’s Big Year Didn’t Work Out for All of Its Billionaires

“All of the fears that have been holding this industry back for a decade have now gone away,” said Jeff Dorman, chief investment officer at crypto investor Arca. “It’s not going to be banned, it’s going to be used for a big part of finance, and you’re not going to jail for participating in crypto anymore.”

“Other than the price,” he said, “this was probably the most positive year in crypto history.”

Elon Musk Is Vindicated in Delaware

Tesla CEO Elon Musk won the ability to become even richer on Friday after Delaware’s Supreme Court reinstated a compensation package that a lower-court judge threw out two years ago. The ruling is good news for the hundreds of other companies incorporated in the state that rely on its courts to enforce contracts and well-established corporate law principles. […]

Maybe competition from Texas concentrated the minds of Delaware’s High Court on the law. The justices ruled unanimously that tossing Mr. Musk’s pay package—now worth about $139 billion—was “inequitable” and left him “uncompensated for his time and efforts over a period of six years.” This is a loud and welcome signal to lower-court judges to let shareholders decide what’s fair.