SEC charges three fake crypto exchanges and four investment clubs for $14M online fraud
The U.S. Securities and Exchange Commission (SEC) has announced charges against three purported crypto trading platforms and four investment clubs involved in an online fraud scheme that caused investors to lose over $14 million.
Source SEC
The scheme relied on advertising through social media and WhatsApp groups featuring supposed "experts," directing victims to fake trading platforms where withdrawals were blocked under the pretext of additional fees. According to the SEC, no real trading occurred, and the funds were siphoned offshore through banks and crypto wallets.
This case highlights the need for caution when investing in cryptocurrencies and online platforms and serves as a warning to prospective investors about the risks of fake crypto exchanges and unofficial investment clubs.
