The SEC (U.S. securities regulator) has brought two new cases linked to the growing boom in pre-IPO investing, involving allegations that investors’ money was misused. Investors believed their funds were purchasing pre-IPO shares in OpenAI, SpaceX and xAI, but the SEC alleges the money instead went to strip clubs, Bloomingdale’s and Amazon. The cases target the alleged investment activity rather than the companies whose shares investors thought they were acquiring.