TL;DR:
- The California Department of Financial Protection and Innovation has taken action against five firms claiming to offer AI-assisted crypto trading services.
- The companies, including Harvest Keeper and Maxpread Technologies, have been accused of being “fraudulent investment schemes.”
- The DFPI alleges that the firms were taking advantage of the hype surrounding AI to attract investors with false promises of high returns.
- The firms claimed to use AI technology to trade crypto assets and used multi-level marketing tactics to incentivize investors to bring in more funds, but these claims were false, according to the DFPI.
- The regulator’s action serves as a warning to investors to be cautious of companies claiming to use AI technology for financial gain and to thoroughly research investment opportunities before putting their money at risk.
- The accused firms went to great lengths to present themselves as legitimate businesses, but some websites are currently down.
- Visque Capital, in particular, offers high returns, but the DFPI alleges that these schemes were fraudulent, and eventually, withdrawals would be stopped, leaving investors with no access to their funds.
- Investors are warned to be wary of too-good-to-be-true returns and to thoroughly research any investment opportunity before committing to their funds.
Main AI News:
The California Department of Financial Protection and Innovation (DFPI) has taken action against five firms claiming to offer AI-assisted crypto trading services. The entities Harvest Keeper, Visque Capital, Coinbot, QuantFund, Maxpread Technologies, and its CEO Jan Gregory Cerato have been accused of being “fraudulent investment schemes.” The DFPI alleges that two of the firms even faked their CEOs, with Maxpread using an AI-generated avatar and Harvest Keeper hiring an actor to play the role of CEO.
According to the regulator, these companies were taking advantage of the hype surrounding AI to attract investors with the promise of high returns. The firms claimed to use AI technology to trade crypto assets and used multi-level marketing tactics to incentivize investors to bring in more funds. However, the DFPI stated that these claims were false.
In a statement, the DFPI said, “The pitch was simple. Investors were told that if they invested funds, these entities would use their knowledge, skill, experience, and AI to trade crypto assets and generate incredible profits. In each case, these claims are false.” The regulator’s action serves as a warning to investors to be cautious of companies claiming to use AI technology for financial gain and to thoroughly research any investment opportunities before putting their money at risk.
The DFPI highlighted that the accused firms went to great lengths to present themselves as legitimate businesses, creating professional websites and social media accounts and even partnering with influencers for promotions. However, the websites for Harvest Keeper and Coinbot are currently down, while those of the remaining three firms remain active.
Visque Capital, in particular, offers a range of investment plans on its website, with the most expensive plan claiming a return of up to 3% per day. Based on an initial investment of $50,000, this plan would supposedly yield a return of approximately $270,000 over 180 days.
However, according to the DFPI, these schemes were fraudulent and initially appeared to be functioning properly, with early withdrawals processed and account balances increasing. However, eventually, the ability to make withdrawals would be stopped and the website would become unavailable, resulting in investors being unable to access their funds. This serves as a cautionary tale for investors to be wary of too-good-to-be-true returns and to thoroughly research any investment opportunity before committing to their funds.
Conlcusion:
The recent action taken by the California Department of Financial Protection and Innovation (DFPI) against five crypto firms highlights the importance of due diligence and caution when investing in the crypto market. These companies were accused of being fraudulent investment schemes, using AI and actors to present a false image of legitimacy and take advantage of the hype surrounding AI.
The DFPI’s action serves as a warning to investors to be wary of companies claiming to use AI technology for financial gain and to thoroughly research investment opportunities before putting their money at risk. The case of Visque Capital, in particular, highlights the importance of avoiding investments that promise too-good-to-be-true returns and always thoroughly researching any investment opportunity before committing funds.
