SEC charges three people with impersonating brokers in $2.9 million Bitcoin fraud scheme

On December 11, the U.S. SEC charged three individuals with impersonating securities brokers and investment advisors to carry out schemes involving digital assets. The indictment mentions three Nigerian nationals and accuses them of moving more than $2.9 million by directing at least 28 investors to fraudulent platforms, then instructing them to buy Bitcoin at legitimate brokerage firms or cryptocurrency exchanges and then transfer the funds to blockchain addresses associated with the defendants. The SEC noted that the defendants allegedly created websites impersonating multiple professionals associated with well-known U.S. companies and used voice modification software as well as online group chats and social media to cultivate trust and stimulate interest in their alleged trading expertise. An advisory from Investor.gov stated that impersonation scams appear to be increasingly sophisticated due to technological advances, including the use of AI-driven content and deep fake audio or video. In this case, the alleged scam reportedly encouraged investors to research identities stolen from the public records of actual investment professionals. The operators then set up fake investment account interfaces showing floating profits to entice victims to invest more money.