SEC sues 38 crypto firms for fake registration certificates

Federal court seeks injunctions against fake SEC filers

The U.S. Securities and Exchange Commission (SEC) filed 38 civil complaints yesterday against crypto investment advisory firms that displayed fake SEC certificates. The SEC is asking a federal court for injunctions, civil penalties, and bans on future reporting exemptions for the defendants.

The filings name several crypto operators, including CryptoOrbit, Ftaexchange, Pinnacle, Quantum, and RBH. SEC staff attempted to contact many of these advisors, but several phone numbers were disconnected or belonged to unrelated businesses. Postal mail was also returned as undeliverable.

Key details from the enforcement action

• 38 entities were charged with feigning legitimacy as U.S. advisers through false filings.
• The SEC accused the firms of making materially false statements on Form ADV and failing to file required disclosures.
• Commissioners allege violations of Sections 204(a) and 207 of the Investment Advisers Act.
• FINRA has removed non-compliant forms for these advisors from adviserinfo.sec.gov.
• No investor losses have been quantified in these initial complaints.

What the SEC allegations say

Quantum Financial Institute claimed it had registered investment advisor status that did not exist. The firm’s press releases promoted a "multi-dimensional intelligent investment system" and courses teaching students about "bitcoin giveaways" and market strategies. It also produced a fake SEC certificate to mislead customers.

Pinnacle Crypto Exchange stated it had completed SEC registration, which was not true. THEVGPRO advertised a BTC-backed "settlement security fund" with registration numbers the SEC never approved. RBH Infinity Exchange promoted three health and intellectual-property-themed crypto tokens that are now worthless.

Other defendants include Apexus Securities Ltd, which allegedly operated from Hong Kong while listing a Colorado office it did not have. Web3 University accessed filing systems from China and listed a disconnected phone number and an undeliverable Colorado Springs address. Absolutaris Base Limited faced BBB complaints about worthless stock signals and ads promising unsustainable monthly returns of 20-60%.

Third-party claims vs. SEC records

Third-party promotional write-ups for some of these crypto businesses falsely claimed they carried valid SEC registration. The registration numbers cited in those write-ups precisely match the enforcement action filed yesterday.

Why this matters for investors

These cases show how unregistered firms may use fake credentials to appear legitimate to retail investors. The SEC is moving to block these companies from filing future reports and to impose penalties. Investors are reminded to verify registration status directly through official SEC channels.

What is still unclear

The SEC has not released details on total investor losses linked to these firms. It is also unclear how many of the 38 defendants will respond to the complaints or reach settlements.

Sources

• Protos