Securities Department of North Dakota issued a warning, stating that some "investment education foundations" claim to teach investors about cryptocurrency and stock knowledge, but are actually scams. These scams use deception, including "risk-free" trials and false loans, to convince victims to invest and pay excessive commissions.

These scams typically start with social media advertisements, leading potential victims to WhatsApp groups operated by false founders and automated robots. In these groups, the so-called founders will provide investment courses, and then introduce a fraudulent cryptocurrency exchange. Investors will initially receive "free" tokens to test an artificial intelligence trading robot, which will falsely generate profits.

Encouraged by the illusion of success, people deposit real money, and if they do not have enough funds, scammers will lead them to fake loan providers on Telegram. These loans are directly credited to the fraudulent exchange, but victims soon realize that they cannot withdraw any funds unless they repay the loan or pay false commissions. The scam freezes accounts under the pretext of regulatory issues, then scammers close the business and rename it under a different name. To gain credibility, scammers may present genuine government documents, claiming to be registered with the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of the Treasury, and publish misleading articles online.