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Statement of Charges Against Zenith Asset Tech in Cryptocurrency Fraud

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Summary

The Washington State Department of Financial Institutions Division of Securities entered a Statement of Charges (S-24-3882-25-SC01) against Zenith Asset Tech Foundation, Cirkor Inc., and 19 additional respondents on April 22, 2026. Between 2024 and 2025, the respondents allegedly defrauded at least 38 investors—including 3 Washington residents—out of nearly $9.9 million through cryptocurrency scams involving fake investment education foundations, fake trading platforms, fake AI-generated trading signals, and unregistered money transmitters. The respondents sold fake securities token offerings and were not registered to sell investments, allegedly failing to disclose material information about their AI bot system and their own registration status. Remedies sought include cease and desist orders and fines.

“Between 2024 and 2025, the Respondents defrauded at least 38 investors (including 3 Washington residents) out of nearly $9.9 million in a series of cryptocurrency scams, utilizing fake investment education foundations, fake trading platforms, fake AI generated trading signals, and unregistered money transmitters.”

WA DFI , verbatim from source
Why this matters

Firms offering cryptocurrency investment products—particularly those marketing AI-driven trading signals or platforms—should confirm their money-transmitter registration status with applicable state regulators and ensure all material information about trading systems is fully disclosed to investors. This enforcement action illustrates that fake AI-generated signals are an active fraud vector that state securities regulators are pursuing under state securities statutes.

AI-drafted from the source document, validated against GovPing's analyst note standards . For the primary regulatory language, read the source document .
Published by WA DFI on dfi.wa.gov . Detected, standardized, and enriched by GovPing. Review our methodology and editorial standards .

About this source

GovPing monitors WA DFI Securities Enforcement for new banking & finance regulatory changes. Every update since tracking began is archived, classified, and available as free RSS or email alerts — 23 changes logged to date.

What changed

The Washington State Department of Financial Institutions entered a Statement of Charges (S-24-3882-25-SC01) against 21 respondents including Zenith Asset Tech Foundation, Cirkor Inc., and multiple associated entities for alleged violations of RCW 21.20.140, RCW 21.20.040, RCW 21.20.020, and RCW 21.20.010. The respondents are accused of operating a cryptocurrency fraud scheme between 2024 and 2025 that victimized at least 38 investors, using fake investment education foundations, fake trading platforms, fake AI-generated trading signals, and unregistered money transmission. The respondents allegedly sold fake securities token offerings without being registered to sell investments and failed to disclose material information about their AI bot system.

Cryptocurrency investment firms and unregistered securities sellers should note that this enforcement action signals active state-level scrutiny of fraudulent digital-asset schemes involving fake AI trading systems. Any firm offering cryptocurrency-related securities or acting as a money transmitter in Washington should verify registration status and ensure full disclosure of investment system mechanics to investors.

Archived snapshot

Apr 23, 2026

GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.

Zenith Asset Tech Foundation, Cirkor Inc. (full list in Statement of Charges) – Statement of Charges – S-24-3882-25-SC01


Case summary

On April 22, 2026, the Washington State Department of Financial Institutions Division of Securities entered a Statement of Charges (S-24-3882-25-SC01) against Zenith Asset Tech Foundation, Cirkor Inc. (full list in Statement of Charges).

Order details

Order File: S-24-3882-25-SC01

Laws & Rules: RCW 21.20.140, RCW 21.20.040, RCW 21.20.020, RCW 21.20.010

Penalties/Remedies:

  • Cease and desist;
  • Fines & costs

Allegations

Between 2024 and 2025, the Respondents defrauded at least 38 investors (including 3 Washington residents) out of nearly $9.9 million in a series of cryptocurrency scams, utilizing fake investment education foundations, fake trading platforms, fake AI generated trading signals, and unregistered money transmitters.

The Respondents sold fake securities token offerings, and the Respondents were not registered to sell investments.

The Respondents failed to disclose material information related to the investment, such as the existence and function of the AI bot system, and registration status of the Respondents.

The Respondents have a right to request a hearing on the Statement of Charges.

Full Respondents:

  • Zenith Asset Tech Foundation;
  • Cirkor Inc.;
  • Quantum Prosperity Consortium Tech Foundation;
  • Novabit Inc.;
  • InnovaTech Foundation;
  • EtherGalaxy Inc.;
  • Wealthtutor Corp.;
  • Lencoin Tech Corp.;
  • Dreamadviser Corp.;
  • Opacoin Tech Corp.;
  • Fortunebuild Foundation;
  • Malcoin Tech Corp.;
  • XR Lily Trading Inc.;
  • Blue Star CZY Trading LLC;
  • LPC Wholesales Inc.;
  • Innovare Fushion Limited;
  • Airio Inte Ltd;
  • East Rain Transportation Inc.;
  • Junxin Qiao;
  • Rong Fa Trade Inc.,

Order file

View order file

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Last updated

Classification

Agency
WA DFI
Filed
April 22nd, 2026
Instrument
Enforcement
Branch
Executive
Legal weight
Binding
Stage
Final
Change scope
Substantive
Docket
S-24-3882-25-SC01

Who this affects

Applies to
Investors Technology companies
Industry sector
5239.1 Cryptocurrency & Digital Assets
Activity scope
Cryptocurrency fraud Unregistered securities offering Unlicensed money transmission
Geographic scope
Washington US-WA

Taxonomy

Primary area
Securities
Operational domain
Compliance
Topics
Consumer Protection Anti-Money Laundering

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