Recently, it has been reported that the U.S. Securities and Exchange Commission (SEC) has filed lawsuits against three crypto assets trading platforms and four investment institutions, accusing them of jointly orchestrating a scam of at least $14 million.

The scheme is quite covert. Starting from January 2024, the perpetrators heavily promoted on social media, claiming to have an advanced AI trading strategy that could help investors make quick profits. They lured investors into WhatsApp groups through these advertisements, further brainwashing and building trust. Subsequently, they induced victims to open accounts on platforms like Morocoin, Berge, and Cirkor.

This is where the real trap lies – these platforms are nothing but shells. They only display some pretty fake balances and fabricated transaction records, making investors think they are raking in profits. In fact, no real transactions are taking place.

When investors want to withdraw profits, scammers will find various excuses, such as taxes, processing fees, and freezing fees, with reasons emerging endlessly to extract more funds. Laura D'Allaird, head of the SEC's cyber unit, emphasized in a statement that fraud is fraud, and no advanced technology can change this essence. The SEC has filed a lawsuit in the U.S. District Court for Colorado seeking a permanent injunction and civil penalties against the parties involved.

This case serves as a warning to all investors: high yield promises often hide traps. When choosing a platform, make sure to verify its qualifications and do not be deceived by sweet words.