According to Commissioner Travis J. Iles, the commission took action against Horatiu Charlie Caragaceanu, founder of The Shark of Wall Street and Hedge4.ai. The investigation was conducted jointly with the Alabama Securities Commission, the Montana State Auditor, the Kentucky Department of Financial Institutions, and the New Jersey Securities Bureau. The Texas regulator claims The Shark of Wall Street and Hedge4.ai were not registered as broker-dealers in the state.
Karagachanu positions his firms as artificial intelligence laboratories. The businessman claims that TruthGPT Coin uses an AI model called Elon Musk AI, which is able to analyze cryptocurrencies, predict their rates and distinguish profitable investments from fraud.
The creators of the project promise investors that the TruthGPT rate will increase by 10,000 times. Investors are convinced that the CEO of Tesla and SpaceX, Elon Musk, supports the crypto asset, and the CEO of the Binance cryptocurrency exchange, Changpeng Zhao, and Ethereum co-founder Vitalik Buterin are also participants in the ecosystem.
The Commissioner noted that Karagachanu, The Shark of Wall Street and Hedge4.ai have previously held Initial Coin Offerings (ICOs), offering tokens based on the Ethereum and Binance Smart Chain blockchains. Karagachanu promised investors a profit of up to 2000% per year, however, the advertised tokens were never placed for trading on large crypto exchanges, and now have no value.
“Now there is a hype around artificial intelligence, they are talking about it in the media and social networks, they are used in various sectors of the economy. However, attackers are trying to capitalize on the public interest. They claim to have developed sophisticated platforms, but often their proposals turn out to be fraudulent,” said Commissioner Isles.
Recently, Binance management reported that someone is using artificial intelligence to misinform the trading platform and its CEO, Changpeng Zhao. The ChatGPT program gave users information that Zhao was a prominent functionary of the Chinese Communist Party.
Source: Bits
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