Recently, a California financial regulator issued orders against five entities that were allegedly involved in fraudulent investment schemes. The firms in question claimed to offer AI-assisted crypto trading services and promised high returns on investment before disappearing altogether.
The Department of Financial Protection and Innovation accused two of the entities of using actors and AI to impersonate their CEOs. The first firm, Maxpread Technologies, allegedly used an AI-generated avatar called “Michael Vanes” to market its products, while the second firm, Harvest Keeper, hired an actor to play the role of its CEO, Markus Peters.
Scammers like to deceive investors by using phony CEOs, sham algorithms, & Ponzi schemes. Today, we've issued desist and refrain orders to five entities/individuals who violated CA securities laws. For more information: https://t.co/gj13z2OE4G#investing #hyip #Cryptonews pic.twitter.com/MXHPYwVIny— CA Department of Financial Protection & Innovation (@CaliforniaDFPI) April 19, 2023
According to the regulator, the entities took advantage of the hype surrounding AI to lure in investors with the promise of incredible returns. They claimed to use the technology to trade crypto assets and even used multi-level marketing schemes to reward investors for recruiting others.
The regulator noted that the entities went to great lengths to appear as legitimate businesses, creating professional websites, social media accounts, and promotions from influencers. However, their claims were false, and investors were left with no way to access their funds when the websites eventually went offline.
The allegations against these firms highlight the need for caution when investing in crypto assets. As with any investment opportunity, it’s essential to do thorough research and only invest money you can afford to lose. Be wary of promises of high returns and do not be afraid to ask questions about the legitimacy of a company before investing.
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