Litigation Releases (Cryptoaiml Ltd.; Cryptoaiml Capital Foundation; TSAI Pro Ltd.; TSAI Capital Foundation)

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Cryptoaiml Ltd.; Cryptoaiml Capital Foundation; TSAI Pro Ltd.; TSAI Capital Foundation

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26654 / September 29, 2026

Securities and Exchange Commission v. Cryptoaiml Ltd.; Cryptoaiml Capital Foundation

, No. 26-civ-08508 (S.D.N.Y filed Sept. 29, 2026)

Securities and Exchange Commission v. TSAI Pro Ltd.; TSAI Capital Foundation

, No. 26-civ-08518 (S.D.N.Y filed Sept. 29, 2026)

SEC Charges Multiple Entities in Fraud Schemes Totaling at Least $15 Million that Used WhatsApp and Other Platforms to Lure Investors

On September 29, 2026, the Securities and Exchange Commission charged multiple entities that are likely operated by individuals located overseas for defrauding hundreds of retail investors, including many in the U.S., through so-called investment confidence scams where the perpetrators sought to build online relationships with unsuspecting clients before stealing their money.

In two separate complaints, both filed in U.S. District Court for the Southern District of New York, the SEC charged Cryptoaiml Ltd. and Cryptoaiml Capital Foundation as well as TSAI Pro Ltd. and TSAI Capital Foundation with fraud in connection with schemes that feigned SEC compliance while misappropriating more than $12.5 and $2.8 million, respectively, from investors through online platforms.

According to the SEC complaint against Cryptoaiml and Cryptoaiml Capital Foundation, from at least August 2024 through March 2025, the entities formed WhatsApp group chats where they gained investor trust by impersonating investment professionals and issuing supposed AI-generated trading "signals" or tips claiming to produce large profits. The defendants allegedly directed investors and clients to open accounts on their fake trading platform and manipulated them into transferring crypto assets to the platform. In some cases, the defendants allegedly established an investment adviser client relationship with unwitting investors who signed investment management agreements that were represented to be legitimate. As alleged, the entities also lured investors and clients to their platform by falsely claiming to be certified by regulators, including the SEC, and posted a screenshot on their website of a falsified Form D filed by Cryptoaiml Ltd. with the SEC. The complaint alleges that there was no genuine trading platform as no trading took place, the reflected profits were fictitious, and investors who attempted to withdraw funds were told that their accounts were frozen until they paid fraudulent advance fees.

According to the SEC's complaint against TSAI Pro Ltd. and TSAI Capital Foundation, from September 2024 to March 2025, the entities represented to investors through their website, WhatsApp chats, and public Facebook that they could earn guaranteed profits by, among other things, depositing funds on their online platform for the purpose of renting bots programmed with artificial intelligence to trade on investors' behalf. The defendants also told investors that they could earn money by recruiting others to invest in the AI-trading bot program. They also falsely represented that TSAI-which offered and sold the bot program to investors-was fully regulated by the SEC and posted a phony certificate from the agency on their website that referenced a falsified Form D filed by TSAI Pro Ltd. As alleged, the entire AI-trading bot program was a fraud: there were no AI trading bots and deposited funds never were used to earn returns for investors.

The complaints, filed in the United States District Court for the Southern District of New York, charge Cryptoaiml Ltd. and Cryptoaiml Capital Foundation with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940, and charge TSAI Pro Ltd. and TSAI Capital Foundation with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933. The complaints seek permanent injunctions, conduct-based injunctions, disgorgement of ill-gotten gains, and civil penalties.

The SEC's investigation of Cryptoaiml Ltd. and Cryptoaiml Capital Foundation was conducted by David S. Brown and Madiha M. Zuberi with assistance from Thomas Bedkowski and supervised by Diana K. Tani and Laura D'Allaird, and the SEC's investigation of TSAI Pro Ltd. and TSAI Capital Foundation was conducted by Jennie B. Krasner with assistance from Bryan Hsueh and supervised by Paul Kim and Laura D'Allaird, all of the Division of Enforcement's Cyber and Emerging Technologies Unit. The litigations will be led by Ruth Pinkel and supervised by Stephen Kam of the SEC's Los Angeles Regional Office.

The SEC's Office of Investor Education and Assistance has issued investor alerts warning investors that fraudsters may use popular group chats or claim to be officially registered with the SEC to lure investors into scams. The SEC encourages investors to use Investor.gov to check the background of anyone offering or selling them an investment.

Separately, the Forms D filed by Cryptoaiml Ltd. and TSAI Pro Ltd. have been removed from the Commission website.