SEC Charges Four Entities in $15 Million AI Trading Scam
The SEC has filed complaints against four entities for allegedly defrauding retail investors of $15 million through fake AI-powered crypto trading schemes.
The Securities and Exchange Commission filed two lawsuits on Tuesday against four entities, alleging they swindled more than $15 million from hundreds of retail investors. The agency claims the groups promised returns from AI-powered crypto trading bots that did not exist.
The entities named in the complaints are Cryptoaiml Ltd., Cryptoaiml Capital Foundation, TSAI Pro Ltd., and TSAI Capital Foundation. According to the SEC, these operations recruited investors through WhatsApp group chats and funneled funds overseas.
The Cryptoaiml entities allegedly raised at least $12.5 million between August 2024 and March 2025, while the TSAI entities collected $2.8 million during a similar timeframe. Investors provided both cash and crypto, believing they were accessing sophisticated trading platforms.
The SEC alleges the operators impersonated financial professionals and issued fake trading signals. The schemes also reportedly used a fabricated screenshot of a Form D filing to suggest regulatory oversight, which was later removed from the SEC website.
Investors attempting to withdraw their funds were met with excuses, including claims that accounts were frozen or that additional advance fees were required. SEC Enforcement Division Director David Woodcock described these as investment confidence scams that rely on manufactured trust.
The agency is seeking civil penalties, disgorgement of funds, and injunctive relief against all four entities. The SEC noted that it previously took action earlier in 2026 against Nathan Fuller of Privvy Investments for a similar $12.3 million scheme involving nonexistent AI trading bots.
