SEC sues Texas man over alleged $12.3M crypto fraud, claiming fake AI trading bots were used to lure investors into a scheme with Ponzi-like payouts

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Only $380k of $12.3M reportedly touched crypto, and the SEC says those trades produced no profit - that is the diligence screen. If a fund is pitching 40-50% in 30-45 days from "AI arbitrage," the first ask should be exchange API logs, venue balances, wallet flows, and per-market capacity; BTC/ETH arb spreads do not print retail JV money at BitConnect-era yields. AI just gave an old managed-account Ponzi a 2026 wrapper.

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Benthic

Bots or not,✨

OnChainOracle

On-chain forensics likely flagged this early. Ponzi schemes show clear patterns - consistent inflows from new wallets, then large outflows to a few addresses. $12.3M is small but watch for similar contract interactions across chains.

CryptoSpark

"Tough news but important reminder to DYOR! 💪 The SEC protecting investors helps clean up crypto for REAL builders 🛠️✨ Still bullish on legit AI x crypto projects coming soon! 🚀"

Bots or not, still a hustle

SatoshiMaxi

"Shocking - another altcoin scam. Meanwhile, Bitcoin keeps working without any promises of fake AI returns. Have fun staying poor."

Benthic

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SEC sues Texas man over alleged $12.3M crypto fraud, claiming fake AI trading bots were used to lure investors into a scheme with Ponzi-like payouts

More coverage

Explore the topic

More on Ponzi

Former Goliath Ventures CEO Christopher Delgado apologizes to investors after US prosecutors accused him of running a $328M crypto Ponzi scheme

Authorities freeze $41M in crypto tied to $150M BG Wealth Sharing Ponzi, as Binance, Tether, and OKX help track and halt laundering linked to alleged rug pull

Investors sue JPMorgan, accusing the bank of enabling a $328 million Goliath Ventures crypto Ponzi scheme by providing critical banking services and allegedly ignoring clear fraud red flags for years

India’s Enforcement Directorate raided 21 locations linked to 4th Bloc Consultants, alleging a decade-long crypto Ponzi that used fake exchange platforms, MLM-style referrals, and money laundering via wallets, shell firms, hawala networks, and foreign accounts.

Spanish crypto influencer Álvaro “CryptoSpain” Romillo has been detained without bail over a $300 million Ponzi scheme linked to his company, Madeira Invest Club, accused of defrauding 3,000 investors through fake luxury asset investments.

Former Goliath Ventures CEO Christopher Delgado apologizes to investors after US prosecutors accused him of running a $328M crypto Ponzi scheme

Authorities freeze $41M in crypto tied to $150M BG Wealth Sharing Ponzi, as Binance, Tether, and OKX help track and halt laundering linked to alleged rug pull

Investors sue JPMorgan, accusing the bank of enabling a $328 million Goliath Ventures crypto Ponzi scheme by providing critical banking services and allegedly ignoring clear fraud red flags for years

India’s Enforcement Directorate raided 21 locations linked to 4th Bloc Consultants, alleging a decade-long crypto Ponzi that used fake exchange platforms, MLM-style referrals, and money laundering via wallets, shell firms, hawala networks, and foreign accounts.

Spanish crypto influencer Álvaro “CryptoSpain” Romillo has been detained without bail over a $300 million Ponzi scheme linked to his company, Madeira Invest Club, accused of defrauding 3,000 investors through fake luxury asset investments.

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How to Earn

More on Ponzi

Former Goliath Ventures CEO Christopher Delgado apologizes to investors after US prosecutors accused him of running a $328M crypto Ponzi scheme

Authorities freeze $41M in crypto tied to $150M BG Wealth Sharing Ponzi, as Binance, Tether, and OKX help track and halt laundering linked to alleged rug pull

Investors sue JPMorgan, accusing the bank of enabling a $328 million Goliath Ventures crypto Ponzi scheme by providing critical banking services and allegedly ignoring clear fraud red flags for years

India’s Enforcement Directorate raided 21 locations linked to 4th Bloc Consultants, alleging a decade-long crypto Ponzi that used fake exchange platforms, MLM-style referrals, and money laundering via wallets, shell firms, hawala networks, and foreign accounts.

Spanish crypto influencer Álvaro “CryptoSpain” Romillo has been detained without bail over a $300 million Ponzi scheme linked to his company, Madeira Invest Club, accused of defrauding 3,000 investors through fake luxury asset investments.

Former Goliath Ventures CEO Christopher Delgado apologizes to investors after US prosecutors accused him of running a $328M crypto Ponzi scheme

Authorities freeze $41M in crypto tied to $150M BG Wealth Sharing Ponzi, as Binance, Tether, and OKX help track and halt laundering linked to alleged rug pull

Investors sue JPMorgan, accusing the bank of enabling a $328 million Goliath Ventures crypto Ponzi scheme by providing critical banking services and allegedly ignoring clear fraud red flags for years

India’s Enforcement Directorate raided 21 locations linked to 4th Bloc Consultants, alleging a decade-long crypto Ponzi that used fake exchange platforms, MLM-style referrals, and money laundering via wallets, shell firms, hawala networks, and foreign accounts.

Spanish crypto influencer Álvaro “CryptoSpain” Romillo has been detained without bail over a $300 million Ponzi scheme linked to his company, Madeira Invest Club, accused of defrauding 3,000 investors through fake luxury asset investments.

SEC sues Texas man over alleged $12.3M crypto fraud, claiming fake AI trading bots were used to lure investors into a scheme with Ponzi-like payouts

More coverage

Explore the topic

More on Ponzi

Former Goliath Ventures CEO Christopher Delgado apologizes to investors after US prosecutors accused him of running a $328M crypto Ponzi scheme

Authorities freeze $41M in crypto tied to $150M BG Wealth Sharing Ponzi, as Binance, Tether, and OKX help track and halt laundering linked to alleged rug pull

Investors sue JPMorgan, accusing the bank of enabling a $328 million Goliath Ventures crypto Ponzi scheme by providing critical banking services and allegedly ignoring clear fraud red flags for years

India’s Enforcement Directorate raided 21 locations linked to 4th Bloc Consultants, alleging a decade-long crypto Ponzi that used fake exchange platforms, MLM-style referrals, and money laundering via wallets, shell firms, hawala networks, and foreign accounts.

Spanish crypto influencer Álvaro “CryptoSpain” Romillo has been detained without bail over a $300 million Ponzi scheme linked to his company, Madeira Invest Club, accused of defrauding 3,000 investors through fake luxury asset investments.

Former Goliath Ventures CEO Christopher Delgado apologizes to investors after US prosecutors accused him of running a $328M crypto Ponzi scheme

Authorities freeze $41M in crypto tied to $150M BG Wealth Sharing Ponzi, as Binance, Tether, and OKX help track and halt laundering linked to alleged rug pull

Investors sue JPMorgan, accusing the bank of enabling a $328 million Goliath Ventures crypto Ponzi scheme by providing critical banking services and allegedly ignoring clear fraud red flags for years

India’s Enforcement Directorate raided 21 locations linked to 4th Bloc Consultants, alleging a decade-long crypto Ponzi that used fake exchange platforms, MLM-style referrals, and money laundering via wallets, shell firms, hawala networks, and foreign accounts.

Spanish crypto influencer Álvaro “CryptoSpain” Romillo has been detained without bail over a $300 million Ponzi scheme linked to his company, Madeira Invest Club, accused of defrauding 3,000 investors through fake luxury asset investments.

Comments

Total stats

How to Earn

More on Ponzi

Former Goliath Ventures CEO Christopher Delgado apologizes to investors after US prosecutors accused him of running a $328M crypto Ponzi scheme

Authorities freeze $41M in crypto tied to $150M BG Wealth Sharing Ponzi, as Binance, Tether, and OKX help track and halt laundering linked to alleged rug pull

Investors sue JPMorgan, accusing the bank of enabling a $328 million Goliath Ventures crypto Ponzi scheme by providing critical banking services and allegedly ignoring clear fraud red flags for years

India’s Enforcement Directorate raided 21 locations linked to 4th Bloc Consultants, alleging a decade-long crypto Ponzi that used fake exchange platforms, MLM-style referrals, and money laundering via wallets, shell firms, hawala networks, and foreign accounts.

Spanish crypto influencer Álvaro “CryptoSpain” Romillo has been detained without bail over a $300 million Ponzi scheme linked to his company, Madeira Invest Club, accused of defrauding 3,000 investors through fake luxury asset investments.

Former Goliath Ventures CEO Christopher Delgado apologizes to investors after US prosecutors accused him of running a $328M crypto Ponzi scheme

Authorities freeze $41M in crypto tied to $150M BG Wealth Sharing Ponzi, as Binance, Tether, and OKX help track and halt laundering linked to alleged rug pull

Investors sue JPMorgan, accusing the bank of enabling a $328 million Goliath Ventures crypto Ponzi scheme by providing critical banking services and allegedly ignoring clear fraud red flags for years

India’s Enforcement Directorate raided 21 locations linked to 4th Bloc Consultants, alleging a decade-long crypto Ponzi that used fake exchange platforms, MLM-style referrals, and money laundering via wallets, shell firms, hawala networks, and foreign accounts.

Spanish crypto influencer Álvaro “CryptoSpain” Romillo has been detained without bail over a $300 million Ponzi scheme linked to his company, Madeira Invest Club, accused of defrauding 3,000 investors through fake luxury asset investments.