The Securities and Exchange Commission charged four entities on September 29 with running two online investment scams that took more than $15 million from roughly 2,000 retail investors. The complaints, filed in the U.S. District Court for the Southern District of New York, describe schemes built on fake artificial intelligence trading tools and forged regulator credentials.
What happened in the Cryptoaiml and TSAI cases
The SEC filed two separate complaints against Cryptoaiml Ltd. and Cryptoaiml Capital Foundation in one case and TSAI Pro Ltd. and TSAI Capital Foundation in the other. The agency believes the operators are likely located overseas. Both groups allegedly built online relationships with investors, claimed to be regulated by the SEC, and then took their money.
David Woodcock, Director of the SEC’s Division of Enforcement, said the goal in every scheme was the same. The operators promised outsized returns, claimed SEC oversight, and stole the funds. The SEC is asking anyone who encountered the platforms to report through its online tip portal.
Key facts from the SEC complaints
The two complaints cover different pitches but follow the same playbook. The table below shows the scale of each alleged scheme.
| Scheme | Alleged misappropriation | Investors | Operating period | Core pitch |
| Cryptoaiml Ltd. and Cryptoaiml Capital Foundation | More than $12.5 million | More than 300 | August 2024 to March 2025 | AI trading signals in WhatsApp groups |
| TSAI Pro Ltd. and TSAI Capital Foundation | At least $2.8 million | About 1,715 | September 2024 to March 2025 | Renting AI trading bots |
| Combined | More than $15.3 million | More than 2,000 | 2024 to 2025 | Crypto and AI investment scams |
How the WhatsApp trading signal scheme worked
According to the complaint, the Cryptoaiml entities formed WhatsApp group chats where individuals impersonated investment professionals. They issued supposed AI-generated trading signals that claimed a 98 percent accuracy rate. Investors were directed to open accounts on a fake trading platform and transfer crypto assets into it.
Some investors signed investment management agreements that looked legitimate, which the SEC says created the appearance of an adviser relationship. The operators posted a screenshot of a falsified Form D filing on their website to support claims of SEC certification. In reality, the complaint alleges no actual trading occurred and the profits displayed on the platform were fabricated.
When investors tried to withdraw, they were told their accounts had been frozen and that additional payments were required first.
The TSAI bot rental scheme
The TSAI entities promised profits to investors who paid to rent artificial intelligence trading bots programmed to trade on their behalf. Rental fees ranged from $100 to $500,000. Investors were also told they could earn money by recruiting others into the program.
The SEC says there were no AI trading bots. Deposits in Bitcoin, Ether, Tether, and USD Coin were pooled into consolidation wallets instead of being traded. Investors who requested withdrawals were charged supposed verification fees and taxes. The website went offline in March 2025.
Red flags in both schemes
Both complaints describe tactics that repeat across online investment scams. The table below pairs each warning sign with how it appeared in these cases.
| Red flag | How it appeared in these cases |
| Fake regulatory credentials | Both groups displayed falsified SEC Form D filings, and TSAI posted a forged agency certificate |
| Unverifiable technology | No third party could examine the trading signals or the bots |
| Recruitment payments | TSAI paid investors for bringing new participants into the program |
| Blocked withdrawals | Investors were told to pay fees or taxes before money could leave |
What investors should do now
The SEC is seeking permanent injunctions, disgorgement with prejudgment interest, and civil monetary penalties against all four entities. It also wants conduct-based restrictions that would bar the operators from future securities activity. Investors who transferred crypto to either platform should preserve every record they have: wallet addresses, transfer confirmations, screenshots of the platforms, and chat logs from WhatsApp and Facebook.
Recovery in cases like these is slow and rarely complete. The operators are believed to be overseas, and the frozen accounts claimed by the scammers were an illusion rather than a real custody arrangement. A filed claim in an SEC action is still often the only path to partial recovery for smaller investors.
How to recover your losses
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis, meaning no recovery, no fee.
Contact Haselkorn & Thibaut today
Time matters in fraud cases involving private funds. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
- Main Phone: 1-888-885-7162
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Offices in Florida, New York, Arizona, Texas, and North Carolina. Former Wall Street defense attorneys with 95+ years of combined experience. No recovery, no fee.
