The Texas Securities Commission has filed multiple charges against Horatiu Charlie Caragaceanu and his organizations The Shark of Wall Street and Hedge4.ai for promoting two cryptocurrencies named TruthGPT Coin and Elon Musk AI Token. We have issued a cease and desist order in cooperation with state regulators. The order seeks to crack down on what they claim is a fraudulent securities scheme that seeks to capitalize on the growing buzz around artificial intelligence (AI).
The TruthGPT coin is marketed as a cryptocurrency powered by an AI system called Elon Musk AI. The AI model is said to be able to examine multiple digital assets, predict future cryptocurrency values, and distinguish between lucrative and illicit investments. It advertises itself as a high venture, even saying it could be worth a staggering 10,000x.
The emergency stop order misinformed investors that Elon Musk endorsed the TruthGPT coin, with animated avatars and images of Musk used to give the impression of his support. says there is. The promotional media also points to the alleged involvement of other celebrities, including Binance founder and CEO Changpeng “CZ” Zhao and Ethereum co-founder Vitalik Buterin.
Securities Commissioner Travis Isles warned that “bad actors continue their attempts to exploit this broader public interest.” he explained:
“They have devised a plan to make it look like they have developed a sophisticated artificial intelligence platform, but it is not rooted in artificial intelligence and their offering is nothing more than a scam.”
Joe Rotunda, executive director of the Texas Securities Commission, advised investors to stay vigilant and “put your emotions aside and evaluate every offer objectively.”
Related: How Is Artificial Intelligence Used for Fraud Detection?
Fraudulent schemes highlight the need for continued vigilance and due diligence in the cryptocurrency industry. The use of buzzwords like “artificial intelligence” is tempting for investors, but it can also be used by malicious actors to facilitate fraudulent practices such as the pump-and-dump schemes common in the cryptocurrency industry. may also be used.
According to data collected by Chainalysis, “Of the 40,521 tokens that launched in 2022 and gained enough traction to merit analysis, 9,902, or 24%, saw their prices fall in their first week and saw pump-and-dump activity. has shown the possibility of
magazine: 4 Clever Crypto Scams to Watch Out For — Dubai OTC Trader Amin Rudd
