A sophisticated WhatsApp scam targeting everyday investors has caught the attention of federal regulators after defrauding Americans out of at least $14 million over the past year. The elaborate scheme used social media advertisements to lure victims into exclusive investment clubs with impressive names like AI Wealth, Lane Wealth, and Zenith Asset Tech Foundation.
Once inside these WhatsApp groups, victims encountered what appeared to be professional investment advisors. These fake experts played specific roles, with a “professor” character sharing economic insights and an “assistant” handling daily questions. The setup felt legitimate and personalized, like having access to elite financial guidance.
The scammers created elaborate personas including fake professors and assistants to build credibility and trust with potential victims.
The fraudsters claimed their investment recommendations came from advanced AI signals, making their strategy sound cutting-edge and scientific. They directed investors to three fake cryptocurrency trading platforms: Morocoin Tech Corp., Berge Blockchain Technology Co., and Cirkor Inc. These platforms looked professional and claimed to have proper government licenses.
However, no actual trading ever occurred on these platforms. Instead, the sites displayed fake profits and losses to create the illusion of real investment activity. Victims watched their accounts show gains and losses, never realizing their money had already been stolen and moved overseas. Unlike legitimate central banks that have government backing and legal protections to prevent bankruptcy even when facing significant losses, these fraudulent platforms had no real financial foundation.
The scammers also offered “Security Token Offerings,” which they described as exclusive opportunities similar to buying stock in new companies. These offerings were completely fictional, but they provided another way to extract money from investors who had already fallen for the initial deception. The Securities and Exchange Commission has now filed charges against the fraudulent companies, seeking permanent injunctions and civil penalties.
The operation spanned multiple countries, with key players operating from China, Malaysia, and Hong Kong. The first wave of clubs ran from January to June 2024, followed by a second wave lasting until January 2025. When victims attempted to withdraw their supposed profits, they were told to pay advanced fees to process the transactions, which were never completed.
What made this scam particularly effective was its multi-layered approach to building trust. Victims received daily market commentary, participated in group discussions, and watched their accounts show trading activity. The combination of social proof, apparent expertise, and technological sophistication created a convincing facade that fooled thousands of Americans seeking investment opportunities in the growing cryptocurrency market.
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