The U.S. Securities and Exchange Commission filed two civil lawsuits on September 29, 2026, in the U.S. District Court for the Southern District of New York against Cryptoaiml Ltd. and TSAI Pro Ltd.
Cryptoaiml Ltd. allegedly misappropriated over $12.5 million (over 300 investors, August 2024–March 2025) and TSAI Pro Ltd. at least $2.8 million (approximately 1,715 investors, September 2024–March 2025), totaling $15.3 million.
The U.S. Securities and Exchange Commission charged Cryptoaiml Ltd. and Cryptoaiml Capital Foundation with violating Section 10(b) of the Exchange Act, Rule 10b-5, and provisions of the Investment Advisers Act.
The U.S. Securities and Exchange Commission alleged that no actual trading occurred in either the Cryptoaiml Ltd. or TSAI Pro Ltd. schemes, and the displayed profits were entirely fabricated.
The U.S. Securities and Exchange Commission is seeking permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, civil monetary penalties, and conduct-based restrictions against the defendants.
The U.S. Securities and Exchange Commission alleged that the operators of Cryptoaiml Ltd. and TSAI Pro Ltd. funneled pocketed investor payments to overseas accounts.
The Cryptoaiml Ltd. investment scheme, operating from at least August 2024 through March 2025, falsely claimed to use artificial-intelligence trading signals with a represented 98% accuracy rate to generate profits.
The TSAI Pro Ltd. investment scheme, operating from September 2024 through March 2025, promoted a fake artificial-intelligence trading-bot program where investors paid rental fees ranging from $100 to $500,000.
The Cryptoaiml Ltd. and TSAI Pro Ltd. schemes established credibility by falsely claiming to be regulated by the U.S. Securities and Exchange Commission, displaying falsified Form D filings and forged certificates.
Promoters of the Cryptoaiml Ltd. and TSAI Pro Ltd. schemes recruited investors through invitation-only WhatsApp groups, Facebook, and direct messages, where individuals impersonated investment professionals.
When investors in the Cryptoaiml Ltd. and TSAI Pro Ltd. schemes attempted to withdraw funds, the operators demanded additional payments, such as verification fees or taxes, claiming accounts were frozen.
The U.S. Securities and Exchange Commission stated that the 38 entities exploited the reporting framework for Exempt Reporting Advisers to create an appearance of regulatory credibility.
The enforcement actions follow a broader August 2026 crackdown by the U.S. Securities and Exchange Commission against 38 entities accused of using false Form ADV filings to pose as Exempt Reporting Advisers.
Encrypted messaging platforms should be legally required to police investment groups
Retail investors bear the primary responsibility for verifying the legitimacy of online investment opportunities
Civil SEC sanctions are insufficient to deter offshore cryptocurrency fraud
The SEC's self-reporting filing system is too vulnerable to exploitation by fraudsters