SEC Says AI Investment Scams Took $15 Million

Artificial intelligence, WhatsApp investment groups and claims of regulatory approval allegedly formed the machinery behind two investment schemes that extracted more than $15 million from retail investors, according to civil complaints filed by the United States Securities and Exchange Commission.

The SEC charged Cryptoaiml Ltd., Cryptoaiml Capital Foundation, TSAI Pro Ltd. and TSAI Capital Foundation on September 29. The regulator alleges that entities likely operated by people overseas cultivated trust online before directing victims toward investment platforms that appeared legitimate but were allegedly designed to take their money.

Cryptoaiml and its associated foundation allegedly misappropriated more than $12.5 million, while TSAI Pro and TSAI Capital Foundation allegedly took another $2.8 million. Hundreds of retail investors were affected, including many in the United States, according to the SEC.

The alleged methods reveal how modern investment fraud can exploit both technological excitement and regulatory credibility.

According to the SEC complaint, Cryptoaiml used WhatsApp groups from at least August 2024 through March 2025, where people posing as investment professionals allegedly shared supposed trading signals generated by artificial intelligence. Investors were then directed toward an online platform and encouraged to transfer cryptoassets.

The apparent profits displayed on the platform were allegedly an illusion. The SEC says no genuine trading occurred. When investors attempted to withdraw their money, they were allegedly told that their accounts had been frozen and that additional fees had to be paid before funds could be released.

The TSAI allegations followed a similarly troubling formula.

Between September 2024 and March 2025, investors were allegedly approached through a website, WhatsApp conversations and public Facebook activity with promises that artificial intelligence bots could generate guaranteed profits. Participants were also allegedly offered opportunities to earn money by recruiting additional investors.

The SEC says the bots did not exist and deposited money was not used to generate investment returns.

Perhaps more alarming was the alleged use of the regulator's own identity to establish credibility. The SEC says the schemes falsely represented themselves as compliant with or regulated by the agency. TSAI allegedly displayed a bogus SEC certificate linked to a falsified Form D, while Cryptoaiml was also accused of using false regulatory representations.

The complaints were filed in the United States District Court for the Southern District of New York. The allegations have not been established as findings of liability, making that distinction important as the proceedings continue.