The U.S. Securities and Exchange Commission (SEC) has charged China-based QZ Asset Management and its CEO Blake Yeung with fraud, alleging they defrauded hundreds of investors out of at least $6 million in a pre-IPO scheme. The SEC claims that Yeung misrepresented the safety of investments, the company's relationships with reputable financial firms, and the potential for extraordinary returns using proprietary AI technology. After soliciting clients globally through social media, the defendants reportedly ceased communication and shut down their website, leaving clients without access to their funds. The SEC is pursuing a permanent injunction and seeks to recover ill-gotten gains from the defendants. Jason Burt, the SEC's regional director, condemned the alleged fraud as reprehensible and emphasized the commission's commitment to holding deceptive actors accountable.