SEC sues Cryptoaiml and TSAI over alleged $15M AI trading scams

The Securities and Exchange Commission filed two complaints on Tuesday targeting four entities it says collectively swindled more than $15 million from hundreds of retail investors by promising returns from AI-powered crypto trading bots that never existed. The suits, filed in the Southern District of New York, name Cryptoaiml Ltd., Cryptoaiml Capital Foundation, TSAI Pro Ltd., and TSAI Capital Foundation. According to the SEC, the operations shared a playbook: recruit investors through WhatsApp group chats, dangle high returns from supposed artificial intelligence trading signals, then quietly funnel the money overseas. The playbook: fake bots, fake filings, real money The Cryptoaiml entities allegedly raised at least $12.5 million between August 2024 and March 2025. The TSAI entities accounted for another $2.8 million over roughly the same period. Investors handed over funds in both crypto and cash, believing they were gaining access to sophisticated AI-driven trading platforms. The SEC alleges that the schemes’ operators impersonated financial professionals, issued fabricated trading signals, and went so far as to publish a fake screenshot of a Form D filing, the type of regulat...