The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against three cryptocurrency platforms and four associated firms for orchestrating an AI trading fraud scheme that defrauded retail investors of $14 million. Since January 2024, the accused entities allegedly used social media to lure victims into WhatsApp groups, where they promoted fraudulent AI trading strategies on platforms named Morocoin, Berge, and Cirkor. These platforms reportedly displayed fake account balances and trading records, with no actual trading activity occurring. Investors attempting to withdraw funds were met with fabricated fees, further compounding their losses. The SEC's case, filed in Colorado, seeks an injunction and financial penalties against the defendants. SEC officials have reiterated that fraudulent activities remain illegal, irrespective of the technology employed. This case underscores the ongoing risks associated with liquidity and the broader cryptocurrency market, particularly for high-risk assets.