Recently, the U.S. Securities and Exchange Commission disclosed a typical crypto scam case. The scammers, under the guise of "AI trading signals," lured people into trading groups on WhatsApp, WeChat, and other social platforms, ultimately stealing $14 million. This case is worth every trader's careful review.

The scam's tactics are actually quite old-fashioned, but they are becoming more sophisticated in presentation. They first claim to have a certain advanced AI system capable of predicting market trends, then invite you to join a "private investment club," where so-called "traders" send daily buy/sell signals in the group. To "prove their ability," they will ask you to pay an entry fee, with some even charging thousands of dollars for membership. Once you pay and get involved, the promised profits never materialize. Instead, the scam continues with various tricks and excuses to get you to deposit more money.

There are several warning signs that are hard to ignore: First, any legitimate trading tool will not guarantee absolute returns because the market is inherently risky. Second, if information can only be obtained through private groups, it usually means the information itself is worthless—valuable information doesn't need to be hidden. Third, high "entry fees" or "membership fees" clearly indicate that their profit source isn't from trading itself, but from taking money out of your pocket.

The defensive approach is quite straightforward: only trade on regulated, licensed exchanges, and be wary of any "exclusive insider"