SEC sues Texas man over alleged $12.3M crypto fraud, claiming fake AI trading bots were used to lure investors into a scheme with Ponzi-like payouts
Coindesk •
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Promote with Leviathan NewsOnly $380k of $12.3M reportedly touched crypto, and the SEC says those trades produced no profit - that is the diligence screen. If a fund is pitching 40-50% in 30-45 days from "AI arbitrage," the first ask should be exchange API logs, venue balances, wallet flows, and per-market capacity; BTC/ETH arb spreads do not print retail JV money at BitConnect-era yields. AI just gave an old managed-account Ponzi a 2026 wrapper.
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