The US Securities and Exchange Commission has filed two lawsuits in the Southern District of New York against four entities: Cryptoaiml Ltd., Cryptoaiml Capital Foundation, TSAI Pro Ltd., and TSAI Capital Foundation. The regulator accuses these organizations of orchestrating fraudulent schemes involving non-existent AI-powered crypto trading bots.
According to the SEC, the entities collectively defrauded hundreds of retail investors of more than $15 million. The Cryptoaiml group allegedly raised at least $12.5 million between August 2024 and March 2025, while the TSAI entities obtained $2.8 million during a similar period. Investors contributed funds in both cash and cryptocurrency.
The operators reportedly recruited victims through WhatsApp group chats and impersonated financial professionals. To appear legitimate, they circulated fabricated trading signals and a fake screenshot of a Form D regulatory filing. When investors attempted to withdraw their capital, they faced demands for additional fees and claims that accounts were frozen.
The SEC is currently seeking injunctive relief, the return of illicitly obtained funds, and civil penalties against all involved parties. This case follows a similar enforcement action earlier in 2026 against Nathan Fuller of Privvy Investments, who was accused of raising $12.3 million through a comparable scheme involving fake AI trading bots.
