The Securities and Exchange Commission charged Cryptoaiml Ltd. and Cryptoaiml Capital Foundation with fraud on September 29, 2026. The agency alleges the entities used fake crypto trading accounts and false regulatory claims to take investors’ money.
The complaint alleges misappropriation of more than $12.5 million from investors through an online platform. The case was filed in the US District Court for the Southern District of New York.
Cryptoaiml Capital Foundation Faces SEC Fraud Complaint
According to the SEC’s litigation release, the entities operated WhatsApp group chats from at least August 2024 through March 2025. The agency says they impersonated investment professionals to gain investors’ trust.
Those chats offered purported AI-generated trading signals or tips claiming to produce large profits. The defendants allegedly directed investors and clients to open accounts on a fake trading platform.
The SEC alleges the defendants manipulated those account holders into transferring crypto assets to the platform. In some instances, investors signed investment management agreements presented as legitimate.
The agency says those agreements allegedly established an investment adviser-client relationship with unwitting investors. Its complaint names both Cryptoaiml Ltd. and Cryptoaiml Capital Foundation as defendants.
Complaint Alleges False Regulatory Credentials
The entities allegedly claimed certification by regulators, including the SEC, to draw investors and clients to their platform. They also posted a website screenshot of a falsified Form D filed by Cryptoaiml Ltd., the agency said.
The SEC alleges there was no genuine trading platform and no trading occurred. Profits displayed to investors were fictitious, according to the complaint.
When investors tried withdrawing funds, the defendants allegedly told them their accounts were frozen. The agency says investors were required to pay fraudulent advance fees before accessing their money.
The allegations describe a platform that presented investment activity while, according to the SEC, conducting none. The claimed regulatory credentials and investment returns form part of the agency’s fraud case.
SEC Seeks Injunctions And Financial Penalties
The complaint charges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. It also charges violations of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.
The agency seeks permanent injunctions, conduct-based injunctions, disgorgement of ill-gotten gains, and civil penalties. These are requests in the SEC’s complaint, rather than penalties already imposed.
The investigation was conducted by David S. Brown and Madiha M. Zuberi, with assistance from Thomas Bedkowski. Diana K. Tani and Laura D’Allaird supervised the investigation.
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The SEC separately said Cryptoaiml Ltd.’s Form D had been removed from its website. Ruth Pinkel will lead the litigation, supervised by Stephen Kam of the SEC’s Los Angeles Regional Office.
