About
The Washington State Department of Financial Institutions (DFI), Securities Division, has received multiple complaints regarding Searel Investment Alliance Ltd. (“Searel”). Searel claims to be an innovative investment company leveraging artificial intelligence, founded by “Caleb Mercer.” Searel is associated with a purported cryptocurrency trading platform called Chobes Digital Asset Center Ltd. (“Chobes”). Searel and Chobes used website domains including but not limited to Searel.com, Chobes.com, and Chobes.org.
The investor communicated with individuals associated with Searel through WhatsApp including Caleb Mercer and Chloe Sinclair. Searel initially provided the investor stock tips purportedly generated with artificial intelligence. Searel introduced the investor to their purported trading platform, Chobes. The investor initially invested $3,000 into the Chobes platform through Coinbase followed by two smaller wires of $2,400 and $2,600. Shortly after investing, the investor was contacted by Searel about the alliance’s new token offering called the SBL Token. According to a whitepaper posted to the Searel website, investments into the SBL token would be used to develop a “Super Brain Lifeform” system called MARY.
The investor subsequently signed a one-month partnership agreement with Searel and Chobes and invested an additional $73,455. Searel contacted the investor shortly before the one-month contract term ended and encouraged the investor to renew the contract. This time, the investor was asked to invest $80,000. Chloe Sinclair also told the investor that she would deposit $150,000 to help the investor generate a higher return. This new agreement stipulated that Searel would provide a 700% return.
The investor attempted to wire $80,000 which was flagged by the bank for potential fraud. When the investor informed Chobes that the wire did not go through, Chobes told the investor all the funds in their account would be frozen until the investment was made. The investor did not invest additional funds and has been unable to withdraw their investment from the Chobes platform.
Searel has filed documents to incorporate in the State of Washington, however the documentation filed with the Secretary of State contains information that does not appear to be legitimate. Further, the incorporation date is not consistent with the claims made by Searel. Searel and Chobes have also registered as a Money Services Business (MSB) through the Financial Crimes Enforcement Network (FinCEN).
DFI wants to emphasize to investors that an MSB registration is not a financial license. Fraudulent businesses frequently file incorporation documents with the Secretary of State. The existence of these documents should not be taken as an endorsement that the company is legitimate.
These allegations have not been verified by DFI.
Wire Transfer Red-Flag: If you are considering an investment opportunity and are provided with wire instructions through WhatsApp or Telegram, use extreme caution. This may be an indication of a scam, especially if you are discouraged from disclosing the real purpose of the wire to your bank.
How to Avoid Becoming Victim of a Scam
DFI urges consumers to exercise extreme caution before responding to any solicitation offering investment advice or financial services. Investment professionals need to be licensed with DFI to offer investments to Washington residents. To check the licensing status and to find out if there are any complaints against an investment professional, please visit FINRA Brokercheck (https://brokercheck.finra.org).
How to Report
If you believe you are a victim of this alleged scam:
- Report to FBI
- If you are outside Washington State: contact your local Securities Regulator
- If you are a Washington State resident: Submit a Complaint for statistical purposes.
Additional Resources
Virtual Currency, Cryptocurrency, and Digital Assets Information for Consumers (https://dfi.wa.gov/consumers/virtual-currency)
Information regarding investing strategies, investment products, and how to protect yourself from fraud (https://dfi.wa.gov/financial-education/information/investing)
What You Can Do to Avoid Investment Fraud (https://www.investor.gov/protect-your-investments/fraud/how-avoid-fraud/what-you-can-do-avoid-investment-fraud)