SEC exposes $15 million alleged scam: How WhatsApp groups, AI trading promises and fake SEC claims lured investors

A promise of AI-powered profits can be tempting. Add WhatsApp investment groups, supposed financial professionals and claims of SEC regulation, and an online investment scheme can appear even more convincing.

The Securities and Exchange Commission says that combination was used in two separate alleged investment scams that took at least $15 million from hundreds of retail investors.

On Sept. 29, the SEC charged Cryptoaiml Ltd. and Cryptoaiml Capital Foundation, along with TSAI Pro Ltd. and TSAI Capital Foundation, in two separate complaints. The agency said the entities, which are likely operated by individuals located overseas, allegedly misappropriated more than $12.5 million and $2.8 million, respectively.

How the alleged Cryptoaiml investment scam worked

According to the SEC's complaint, Cryptoaiml and Cryptoaiml Capital Foundation formed WhatsApp group chats from at least August 2024 through March 2025.

The entities allegedly gained investors' trust by impersonating investment professionals and sharing supposed AI-generated trading “signals” that claimed to produce large profits.

Investors were then allegedly directed to open accounts on what the SEC describes as a fake trading platform and transfer crypto assets to it.

The SEC also alleges that the entities falsely claimed to be certified by regulators, including the SEC, and displayed a screenshot of a falsified Form D filed by Cryptoaiml Ltd.

According to the complaint, no genuine trading took place and the profits displayed on the platform were fictitious. When investors attempted to withdraw their funds, they were allegedly told their accounts had been frozen until they paid advance fees.

Second alleged scam promised guaranteed profits from AI bots

The second SEC complaint involves TSAI Pro Ltd. and TSAI Capital Foundation.

From September 2024 through March 2025, the entities allegedly promoted their investment program through a website, WhatsApp chats and public Facebook.

According to the SEC, investors were told they could earn guaranteed profits by depositing funds on an online platform and renting artificial-intelligence bots that were supposedly programmed to trade on their behalf.

Investors were also allegedly told they could make money by recruiting others into the AI-trading bot program.

But the SEC alleges that the entire AI trading bot program was fraudulent. The agency said there were no AI trading bots and that investors' deposited funds were never used to earn returns.

SEC says alleged schemes also used fake regulatory credentials

The SEC alleges that TSAI falsely represented that it was fully regulated by the agency.

Its website allegedly displayed a phony SEC certificate that referenced a falsified Form D filed by TSAI Pro Ltd.

The SEC said the Forms D filed by Cryptoaiml Ltd. and TSAI Pro Ltd. have since been removed from the Commission's website.

SEC warns investors about WhatsApp groups and registration claims

The SEC's Office of Investor Education and Assistance has warned that fraudsters may use popular group chats or claim to be officially registered with the SEC to lure investors into scams.

The agency encourages investors to use Investor.gov to check the background of anyone offering or selling an investment.

The two complaints were filed in the U.S. District Court for the Southern District of New York. The SEC's announcement describes the conduct as allegations in the complaints.