SEC charges crypto platforms and investment clubs over social media scam #
The US Securities and Exchange Commission has charged several crypto platforms and affiliated investment clubs for their alleged involvement in a large-scale social media scam that targeted retail investors. According to the regulator, the schemes used platforms such as Telegram and Discord to promote purportedly exclusive crypto trading opportunities, promising high and consistent returns while misleading participants about risks and the use of funds
The SEC said the operators raised millions of dollars from investors, with funds allegedly misappropriated for personal use or used to make limited payments to earlier participants, creating the appearance of legitimate returns. The charges include fraud and violations of securities registration requirements. The cases form part of the SEC’s broader enforcement focus on online investment scams and the use of social media to solicit retail investors in the digital assets market.