Crypto AI Fraud Defense: DOJ and SEC Target Fake Trading Algorithms
On August 24, 2026, federal juries in Nevada and California convicted two crypto founders of fraud built on fake AI and trading algorithm claims. The verdicts mark the enforcement theme the SEC and DOJ have named a priority, and they show how these document-heavy cases are fought at trial on falsity, materiality, and intent to defraud.
The 2026 Crypto Crash and the Coming Wave of Investor Fraud Litigation
A crypto crash is not fraud, but it exposes the schemes a rising market hides. This guide explains the civil cases that follow the 2026 collapse, false representations about returns, where assets are held, and risk, plus misappropriation of investor funds, and the loss causation question that decides them. By former senior DOJ officials Scott Armstrong and Drew Bradylyons.

