The U.S. Securities and Exchange Commission has asked a federal court to impose injunctions against 38 crypto investment advisory firms accused of using fake SEC certificates and false filings to attract retail investors.
The enforcement action names crypto businesses including CryptoOrbit, Ftaexchange, Pinnacle, Quantum, RBH Infinity Exchange, THEVGPRO and others. The SEC alleges that the firms falsely presented themselves as legitimate U.S. investment advisers.
SEC targets crypto advisers over fake registration claims
Quantum Financial Institute, a crypto-focused firm, allegedly claimed it had registered investment adviser status despite having no valid registration. One promotional release advertised “a multi-dimensional intelligent investment system” and “courses” where students could learn about “bitcoin giveaways” and “the highest win-rate strategies, helping students understand the deep logic of the market.”
The firm also allegedly displayed a fraudulent SEC certificate to deceive customers.
🚨Today, the SEC charged 38 entities alleging that they feigned legitimacy as U.S. advisers through false filings to lure retail investors.Read more below ⬇️ https://t.co/OuJYmUvni2
— U.S. Securities and Exchange Commission (@SECGov) August 27, 2026
The commission is asking the federal court to impose civil penalties and revoke the defendants’ eligibility to use reporting exemptions in future investment adviser filings. At the SEC’s direction, the Financial Industry Regulatory Authority has already removed non-compliant adviser forms from adviserinfo.sec.gov.
RBH Infinity Exchange Inc, Pinnacle Crypto Exchange Inc, THEVGPRO Ltd, Quantum Financial Institute Ltd, Ftaexchange Ltd and other crypto businesses are now defendants in civil lawsuits filed in the United States.
Promotional articles about some of the firms falsely claimed that they held valid SEC registrations. In some cases, the registration numbers cited in those materials precisely matched the numbers involved in the SEC’s enforcement action.
Pinnacle allegedly marketed crypto swaps while promoting its purported good standing with U.S. regulators. THEVGPRO advertised a BTC backed “settlement security fund, enhancing global liquidity and payment efficiency” and cited registration numbers that the SEC says it never approved.
The SEC alleges that the defendants made materially false statements on Form ADV and failed to submit required disclosures. The commission says the firms violated Sections 204(a) and 207 of the Investment Advisers Act. The initial complaints do not quantify investor losses.
SEC staff attempted to contact many of the crypto advisers accused of making false claims. Several listed phone numbers had been disconnected or belonged to unrelated businesses, while postal mail was returned as undeliverable.
Disconnected phones and undeliverable addresses
Several of the unregistered investment advisers claimed to operate from Colorado while allegedly using Hong Kong IP addresses. Apexium Securities Ltd, for example, reportedly used Hong Kong connections while listing a Colorado office where it had no physical presence.
Web3 University, another unregistered crypto operator, allegedly accessed FINRA’s filing system from the People’s Republic of China. The company also used a disconnected phone number and listed an undeliverable office in Colorado Springs.
CryptoOrbit, another defendant in the SEC action, allegedly claimed to hold SEC certificates that the commission had never issued.
A promotional release from Ftaexchange touted digital asset trading and custody services while falsely presenting the company as a registered SEC investment adviser in good standing.
RBH promoted three crypto tokens focused on health and intellectual property that are now worthless. Its promotional material urged readers to “invest in the future — act now.”
Pinnacle Crypto Exchange allegedly claimed it had completed SEC registration even though it had not.
Absolutaris Base Limited was also named as a defendant in the SEC’s action. The Better Business Bureau received consumer complaints about the service, including allegations involving worthless stock signals, a fake trading application and advertisements promising monthly returns of 20-60% that appeared to be unsustainable.
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