Washington regulators allege a $10M 'AI trading' scheme drained investors via messaging-app clubs

Washington State's securities regulator entered a Statement of Charges (S-24-3882-25-SC01) alleging that entities including Zenith Asset Tech Foundation and Cirkor Inc. lured investors through social-media ads into 'free' investment-training groups on messaging apps, where coaches hyped AI-generated trading signals and steered members onto branded trading sites. After small shown 'test trade' wins, operators allegedly blocked larger withdrawals or demanded undisclosed advance fees; regulators say roughly $10 million was drained, and the Seattle Times reports three Washington residents alone put in about $49,000.

What this means for youScammers are using claims of AI trading signals to lure people into paid investment groups. At home, be wary of 'free' trading groups on messaging apps that push you to deposit money or pay fees before you can withdraw; check firms with your state securities regulator before investing.