PANews reported on December 12 that according to Cryptoslate, the U.S. Securities and Exchange Commission (SEC) filed charges against three individuals on December 11, who were accused of impersonating securities brokers and investment advisors and executing a fraud scheme involving digital assets. The SEC's complaint lists three Nigerian suspects and accuses them of defrauding more than $2.9 million by inducing at least 28 investors to enter a fraudulent platform, then instructing these investors to buy Bitcoin at legitimate brokerages or cryptocurrency exchanges, and finally transferring the funds to blockchain addresses associated with these suspects.
According to the SEC, the suspects allegedly created multiple websites impersonating professionals associated with well-known U.S. companies and used voice-changing software, online group chats, and social media to build trust while promoting their alleged trading expertise. An alert published by Investor.gov noted that impersonation scams have become increasingly sophisticated with technological advances, including the use of AI-generated content and deep fake audio or video. In this case, the alleged scam encouraged investors to research identities stolen from the public records of actual investment professionals. The scammers then set up fake investment account screens showing unrealized gains to entice victims to invest more money. Although participants saw alleged monthly returns of up to 25%, the funds were never invested as claimed and more fees were required to withdraw assets.
