Washington state securities regulators say a slick, AI-flavored trading hustle lured investors onto fake platforms, then quietly drained roughly $10 million from their accounts. The Division of Securities this week filed a Statement of Charges and is seeking orders and fines against the entities named in the complaint.
How the scheme worked
The fraud followed a familiar and fast-evolving playbook: social media ads pulled people into “free” investment training groups on messaging apps, where supposed coaches hyped AI-generated trading signals and urged members to open accounts on branded trading sites. Operators then showcased small “test trade” wins to build confidence, before blocking larger withdrawals or demanding previously undisclosed advance fees to unlock funds, a pattern the SEC labeled an advance-fee fraud in a December 22, 2025 press release. The SEC said operators often misappropriated investor money instead of executing real trades.
DFI's charges and who is named
On April 22, 2026, the Washington State Department of Financial Institutions' Division of Securities entered a Statement of Charges (S-24-3882-25-SC01) against Zenith Asset Tech Foundation, Cirkor Inc. and a list of related entities. The filing alleges that between 2024 and 2025 the respondents defrauded at least 38 investors, including three Washington residents, of nearly $9.9 million. According to the filing, the respondents sold fake security token offerings, ran unregistered trading platforms and failed to disclose material facts about their touted AI “bot” systems. These allegations and the full respondent list are laid out by the Division of Securities in the Washington State Department of Financial Institutions.
Local victims and the toll
The fallout did not stop at state lines on a map. It hit living rooms. The Seattle Times reports that three Washington residents together put about $49,000 into the groups. At least one person was able to pull out $600 before accounts were frozen and fresh fees suddenly appeared. State documents and reporting say many others paid the requested advance fees and never saw their money again. Victim accounts and the agency filing describe a steady drip of simulated wins that encouraged ever-larger deposits before the operators effectively vanished.
Regulators sound the alarm as AI scams rise
State and federal officials say the DFI action is one example inside a much larger wave of AI-enabled financial scams. The FBI’s 2025 Internet Crime Report logged more than 22,000 complaints tied to AI and nearly $893 million in AI-related losses last year, a trend the agency says is making schemes faster and harder to spot. The Washington Attorney General has issued investor alerts warning residents about social media recruitment and fake trading platforms. The Washington Attorney General reports that both agencies have urged caution.
What regulators are seeking
The DFI’s Statement of Charges seeks cease-and-desist orders, financial penalties and the payment of investigative costs, and notes that respondents may request an administrative hearing to challenge the allegations. Federal authorities have filed parallel cases: an SEC enforcement action announced in December 2025 seeks permanent injunctions, disgorgement and civil penalties in a related network of platforms and investment clubs. Together, the filings signal that both state and federal regulators are treating AI-linked trading schemes as a priority. The Washington State Department of Financial Institutions filing and the SEC action outline the remedies regulators are pursuing.
What to do if you were targeted
If you think you were targeted, regulators say to hang on to everything: screenshots, chat logs, wallet addresses and transaction records. Report the loss to the FBI’s Internet Crime Complaint Center at IC3. The SEC’s investor hub at Investor.gov offers guidance on what evidence to collect and how to follow up. Victims in Washington can also contact the Division of Securities to report suspected fraud and ask about possible restitution. Officials caution against paying any supposed “unlock” or withdrawal fees and urge investors to verify any adviser or platform on official registries before sending money.
The DFI notes that the case remains active and that respondents have the right to request hearings. Investigators say they are continuing to trace money flows and collect additional evidence. This story will be updated as new orders are filed or hearings are scheduled.
