SEC accuses three individuals of impersonating securities brokers to commit $2.9 million in Bitcoin related fraud

According to Cryptoslate, the US Securities and Exchange Commission (SEC) filed charges on December 11th against three individuals accused of impersonating securities brokers and investment advisors and carrying out a fraud scheme involving digital assets. The SEC complaint lists three Nigerian suspects and accuses them of defrauding over $2.9 million by inducing at least 28 investors into fraudulent platforms, subsequently instructing these investors to purchase Bitcoin at legitimate securities firms or cryptocurrency exchanges, and ultimately transferring the funds to blockchain addresses associated with these suspects. According to the SEC, these suspects are suspected of creating multiple websites impersonating professionals related to well-known American companies, and using voice changing software, online group chats, and social media to build trust while promoting their so-called trading expertise. An alert released by Investor.gov points out that as technology advances, including the use of AI generated content and deepfake audio or video, impersonation scams are becoming increasingly complex. In this case, the alleged scam encouraged investors to study identities stolen from public records of actual investment professionals. The fraudster then set up a false investment account interface, displaying unrealized gains and enticing the victim to invest more funds. Although participants saw a so-called monthly return rate of up to 25%, the funds were never invested as claimed and were required to pay additional fees when extracting assets.