SEC charges four entities over $15M in fake "AI trading" crypto scams that forged SEC registration

The U.S. Securities and Exchange Commission on September 29 filed two fraud complaints in the Southern District of New York against four entities it says ran "investment confidence" scams — building online relationships with victims before stealing their crypto. Both schemes leaned on the same playbook: promise outsized AI-driven returns, claim to be SEC-regulated, then take the money. The agency puts the combined haul at "at least $15 million."

The first complaint names Cryptoaiml Ltd. and Cryptoaiml Capital Foundation, alleged to have misappropriated more than $12.5 million from at least August 2024 through March 2025. Per the SEC, the operators ran WhatsApp group chats, posed as investment professionals, and pushed supposed AI-generated trading "signals." Victims were steered onto a fake trading platform and pushed to transfer crypto; some signed investment-management agreements dressed up as legitimate. The SEC says there was no real platform, no trading took place, and the displayed profits were fictitious — and that investors trying to withdraw were told their accounts were frozen until they paid "advance fees." To sell the legitimacy story, the entities allegedly posted a screenshot of a falsified Form D on their website.

The second complaint names TSAI Pro Ltd. and TSAI Capital Foundation, alleged to have taken more than $2.8 million from September 2024 to March 2025. Here the pitch, made via website, WhatsApp, and a public Facebook page, was "guaranteed profits" from renting AI-programmed trading bots — plus referral commissions for recruiting new investors, a structure with the shape of a multi-level scheme. The SEC alleges the bots didn't exist and deposits were never invested. TSAI also allegedly posted a phony SEC certificate referencing a falsified Form D.

The SEC says the entities are "likely operated by individuals located overseas." Enforcement Director David Woodcock said the methods "varied," but "the goal was the same – promise potential investors outsized returns, claim that they were legitimate entities regulated by the SEC, and then steal their money." The agency said it has removed the fraudulent Form D filings for both Cryptoaiml Ltd. and TSAI Pro Ltd. from its website.

Key facts

• Two complaints, filed Sept. 29, 2026, in the U.S. District Court for the Southern District of New York (SEC press release).
• Cryptoaiml Ltd. + Cryptoaiml Capital Foundation: more than $12.5M misappropriated, Aug. 2024–Mar. 2025 (SEC complaint).
• TSAI Pro Ltd. + TSAI Capital Foundation: more than $2.8M, Sept. 2024–Mar. 2025 (SEC complaint).
• Both allegedly faked SEC registration using falsified Form D filings; those filings have been pulled from SEC.gov (SEC).

The real-world read

These are charges, not verdicts — nothing is proven, and with the operators believed to be offshore, recovering the money or the people is a separate, harder problem the SEC doesn't address. Two tells worth flagging for anyone else: a real regulator does not "certify" or "guarantee" returns, and the forged Form D screenshot is the point — a Form D is a self-filed exemption notice, not an SEC endorsement, and scammers exploit that gap. TSAI's recruit-others-for-commission structure is a classic pyramid marker layered on top of the "AI bot" gloss. Verify any offering's principals at Investor.gov before sending funds.

Not financial advice.

Sources

• SEC — Press Release, "SEC Charges Multiple Entities in Fraud Schemes Totaling at Least $15 Million…" (Sept. 29, 2026) — primary source for the charges, entity names, dollar amounts, dates, mechanics, and the Woodcock quote; links to both complaints (Cryptoaiml and Tsai). Government enforcement announcement, not marketing.