SEC Charges Individuals in Digital Asset Fraud Scheme

According to PANews, the U.S. Securities and Exchange Commission (SEC) has charged three individuals on December 11 for allegedly impersonating securities brokers and investment advisors in a digital asset fraud scheme. The SEC's complaint identifies the suspects as Nigerian nationals who allegedly defrauded at least 28 investors by luring them into fraudulent platforms. These investors were then instructed to purchase Bitcoin through legitimate brokers or cryptocurrency exchanges, only to have their funds transferred to blockchain addresses linked to the suspects, resulting in over $2.9 million in losses. The SEC claims that the suspects created multiple websites impersonating professionals associated with well-known U.S. companies. They used voice-changing software, online chat groups, and social media to build trust while promoting their supposed trading expertise. An alert from Investor.gov highlights that impersonation scams have become increasingly sophisticated with technological advancements, including AI-generated content and deepfake audio or video. In this case, the alleged scam encouraged investors to research identities stolen from public records of actual investment professionals. The fraudsters then set up fake investment account interfaces showing unrealized gains to entice victims to invest more. Despite participants seeing purported monthly returns of up to 25%, the funds were never invested as claimed, and additional fees were demanded when attempting to withdraw assets.