The California supervisory authority takes measures against AI-based alleged crypto ponzi systems

The California supervisory authority takes measures against AI-based alleged crypto ponzi systems

The California Ministry of Finance Protection and Innovation (DFPI) has issued omissions against five companies that benefit from the hype around AI to try to keep gullible investors behind light.

everything hype, little info

According to the supervisory authority, all five companies violate securities law by publicly offering registered securities.

fraudsters like to deceive investors by using false CEOs, sham algorithms and snowball systems. Today we have issued injunctive relief and omissions to five companies/individuals who have violated the securities laws of CA. Further information: https://t.co/gj13z2oe4g#invest #hyip #Kryptoneews pic.twitter.com/mxhpywviny

-CA department for financial protection and innovation (@Californorniadfpi) 19. April 2023

In addition, the companies involved are accused of liut to their customers through omission, incorrect presentation or even alleged falsification of their financial model.

How to be predicted, all five companies offered yellow -high systems that often promised minimum returns every day. This is not just a red flag-since guaranteed returns on investments are almost impossible to achieve-the promised minimum roar were larger than one could reasonably hope to achieve blue chip opportunities.

The turn? According to the speakers of these companies, the promised results could be achieved with the help of AI.

omission orders issued

According to the DFPi Commissioner Clothilde Hewitt, the affected companies use the youngest hype around AI LLMS to tempt investors to make potentially serious mistakes.

"Today's enforcement measures continue the procedure of the DFPI against investor fraud. Fraudsters use the recent excitement to artificial intelligence to tempt investors to false plans.

The brazen company that is targeted by the DFPI is Maxpread Technologies, which promised a minimum roi of 0.6 % per day. In fact, the company seems to work like a normal snowball system. It is also assumed that it uses a AI generated representation of a fictional CEO, although this has not yet been confirmed.

Next follow Harvest keeper, Visque Capital and Quantfund, which offer all guaranteed effective annual interest between 1 % and 4.81 %. The companies in question cited all AI as the reason why they were able to offer this guarantee, in contrast to other companies that promised the high -flying possible effective annual interest.

The last of the companies that are targeted by the supervisory authorities is Coinbot, which essentially is only another crypto trading bot-but this time with AI support. Coinbot offered investors a daily ROI of at least 1.5 %, which was allegedly earned by trades carried out by the bot. In reality, the company simply paid older investors with funds collected by newer investors.

The current excitement for AI has great interest in VCS, existing blue chip companies and private investors alike. Until the hype cools down, we will probably see many more attempts to benefit from the trend, similar to the SHITCOIN boom from 2017.

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