Apr 21, 2023
California Regulator Accuses AI Crypto Trading Firms of Fraud
The California Department of Financial Protection and Innovation (DFPI) has issued desist and refrain orders against five entities who were using artificial intelligence (AI) to trade crypto assets. The companies, Harvest Keeper, Visque Capital, Coinbot, and QuantFund, as well as Maxpread Technologies and its CEO Jan Gregory Cerato, are accused of engaging in fraudulent investment schemes.
The DFPI stated that two of the firms had gone to great lengths to appear legitimate, such as creating professional websites, social media accounts, and promotions from influencers. Maxpread Technologies, for instance, used an AI-generated avatar called “Michael Vanes” to act as its CEO and promote its products. Meanwhile, Harvest Keeper was alleged to have hired an actor to play the role of its CEO Markus Peters.
The DFPI claims that the entities were taking advantage of the hype surrounding AI and luring in investors with the promise of “incredible returns”. They claimed to use their knowledge, skill, experience, and AI to trade crypto assets and generate profits for their investors. The regulator alleges that these claims are false.
Visque Capital, for example, offered a range of investment plans on its website, the most expensive plan claiming to give investors a return of up to 3% per day. Based on an initial investment of $50,000, the plan would supposedly give investors a return of around $270,000 after the full 180 days.
The DFPI noted that the schemes would appear to be working well initially, with early withdrawals processed and account balances steadily increasing. Eventually, however, withdrawals would not be processed and the website would go offline, leaving investors with no way to access their funds.
The DFPI is warning investors to be wary of companies claiming to use AI to trade crypto assets, as well as those offering “incredible returns”. They are also encouraging investors to do their due diligence and research any company before investing in it.
The news of the DFPI’s actions comes at a time when NFTs (non-fungible tokens) are becoming increasingly popular and many businesses are turning to NFT marketing to promote their products and services. NFT marketing is the process of using NFTs to promote a business, product, or service. It involves creating unique NFTs that can be sold or given away as promotional items, as well as using social media platforms like Twitter to market the NFTs.
Businesses looking to get into NFT marketing should consider working with a web3 agency, which specializes in the promotion and selling of NFTs. A web3 agency can help businesses create unique NFTs, as well as provide advice on how to effectively market them. They can also help businesses create a successful NFT marketing campaign, including setting up promotional campaigns on social media platforms like Twitter.
In conclusion, investors should be aware of the risks associated with investing in crypto assets and should do their due diligence before investing. They should also be aware of companies claiming to use AI to trade crypto assets and should be wary of those offering “incredible returns”. Businesses looking to get into NFT marketing should consider working with a web3 agency to ensure their NFT marketing campaigns are successful.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.