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SEC exposes cross-platform scam case: $14 million mafia, Bitcoin regulatory documents surge by 8,000 times
【Crypto World】The U.S. Securities and Exchange Commission (SEC) recently exposed a large-scale scam—three cryptocurrency trading platforms and four so-called investment clubs colluded to defraud approximately $14 million from American retail investors. The entire scheme lasted from January 2024 to January 2025, employing quite covert methods.
The scam’s approach is actually not complicated: illegal actors set up unlicensed trading platforms and fake investment clubs, then sell securities token offering (STO) products that do not exist to investors. It sounds suspicious, but some people fell for it. Why do these types of scams still succeed? Essentially, it’s because they exploit retail investors’ unfamiliarity with STOs and their desire for high returns.
Interestingly, the SEC’s attitude is changing. Just look at this data: by August 2025, mentions of blockchain in SEC documents skyrocketed to about 8,000 times. Do you know what this means? It indicates that regulators are shifting from a one-size-fits-all approach to a more nuanced stance. Especially after the approval of spot Bitcoin ETFs in 2024, Bitcoin-related content has dominated SEC filings, which clearly shows that mainstream financial institutions are warming up to Bitcoin.
These two phenomena send a signal: scammers will find fewer opportunities, while compliant institutions and projects will have more room to grow. For investors, distinguishing genuine from fake becomes especially crucial; choosing licensed platforms is no longer just a recommendation but a necessity.