Scam-Watch: enforcement actions & reported cases
Public regulator actions and court records involving schemes marketed as trading bots or AI trading. Each entry links to its source; wording follows the source ("alleges", "reported"). Allegations are unproven unless a final finding is stated.
Mirror Trading International (Cornelius Steynberg)
2022-06-30 (CFTC complaint); 2023 judgments · CFTC · Amount as stated in source: 29421 BTC (~$1.73B); $1.7B+ restitution and $1.7B+ penalty vs Steynberg
According to the CFTC source: CFTC alleged/found MTI solicited bitcoin for a forex pool supposedly traded by a proprietary "bot"; operated as a Ponzi and misappropriated funds. Default judgment vs Steynberg; MTI ordered to pay restitution
Allegations are not findings of wrongdoing unless a final judgment/order is stated in the source. Dispute this listing
Trade Coin Club (Douver Torres Braga et al.)
2022-11 · SEC · Amount as stated in source: 82000+ BTC (~$295M)
According to the SEC source: SEC alleges MLM promised profits from a crypto trading bot; blockchain analysis showed 99.96% of withdrawals funded by other deposits (alleged Ponzi)
Allegations are not findings of wrongdoing unless a final judgment/order is stated in the source. Dispute this listing
EmpiresX (Empires Consulting Corp.)
2022-06-30 · SEC / CFTC / DOJ · Amount as stated in source: at least $40M
According to the SEC / CFTC / DOJ source: SEC alleges 1% daily profits promised from a trading "bot" that was fake; funds misappropriated. Parallel DOJ and CFTC actions
Allegations are not findings of wrongdoing unless a final judgment/order is stated in the source. Dispute this listing
Arbitraging / "aBOT" (Jeremey Rounsville)
2022 (CFTC order) · CFTC · Amount as stated in source: $177000 civil penalty
According to the CFTC source: CFTC order found claims of a "highly advanced arbitrage bot" were fraudulent; aBOT never executed customer trades
Allegations are not findings of wrongdoing unless a final judgment/order is stated in the source. Dispute this listing
CryptoFX LLC
2022-09 (emergency action); 2024-02 (17 individuals) · SEC · Amount as stated in source: $300M
According to the SEC source: SEC alleges purported crypto/forex trading program was a Ponzi targeting Latino investors
Allegations are not findings of wrongdoing unless a final judgment/order is stated in the source. Dispute this listing
NovaTech Ltd. (Cynthia & Eddy Petion)
2024-08 · SEC · Amount as stated in source: $650M+
According to the SEC source: SEC alleges MLM claiming crypto/forex trading used most funds to pay earlier investors and promoters
Allegations are not findings of wrongdoing unless a final judgment/order is stated in the source. Dispute this listing
Morocoin / Berge / Cirkor + "AI Wealth" WhatsApp clubs
2025-12-22 · SEC · Amount as stated in source: at least $14M
According to the SEC source: SEC alleges WhatsApp "investment clubs" used supposed AI-generated tips to steer victims to fake crypto platforms; no trading occurred; advance-fee withdrawals
Allegations are not findings of wrongdoing unless a final judgment/order is stated in the source. Dispute this listing
CFTC advisory: "AI Won't Turn Trading Bots into Money Machines"
2024-01 · CFTC
According to the CFTC source: Regulator advisory (not a single scheme) on AI trading-bot fraud red flags; useful as reference page
Allegations are not findings of wrongdoing unless a final judgment/order is stated in the source. Dispute this listing
BitConnect (Satish Kumbhani; Glenn Arcaro)
2021-09-01 · SEC (parallel DOJ action) · Amount as stated in source: $2B
According to the SEC (parallel DOJ action) source: SEC alleges "Lending Program" claimed returns from a proprietary "volatility software trading bot"; SEC says the claims were a sham and funds were siphoned off
Allegations are not findings of wrongdoing unless a final judgment/order is stated in the source. Dispute this listing