Five states in the US are ordering the people behind TruthGPT Coin to cease and desist using images of Elon Musk to promote what they label as a scam.
According to the order, the Texas State Securities Board along with the Alabama Securities Commission, Montana State Auditor, Kentucky Department of Financial Institutions, and the New Jersey Securities Bureau are coordinating actions against Horatiu Charlie Caragaceanu and his organisations, The Shark of Wall Street and Hedge4.ai.
TruthGPT Coin uses an artificial intelligence model called Elon Musk AI. This model, they say, is “purportedly able to analyse various cryptocurrencies, predict future digital asset prices and differentiate profitable investments from scams. The respondents are also touting the profitability of TruthGPT Coin – even claiming that TruthGPT Coin will increase in value by as much as 10,000 times”.
AI investment scams
By working together with other states, the Texas State Securities Board can pool resources, intelligence, and expertise to more effectively combat AI investment scams. This collaborative approach is crucial for keeping pace with the rapidly evolving technological landscape and ensuring that investors are protected from increasingly sophisticated threats.
Caragaceanu is allegedly describing The Shark of Wall Street and Hedge4.ai as “artificial intelligence labs” that act through “machine learning programmers and ethical hackers”.
According to Commissioner Iles: “Artificial intelligence is buzzing. It’s received extensive coverage by traditional media, is trending in social media and has the potential to impact many different industries. Bad actors continue their attempts to capitalise on this widespread public interest.
“They’re devising schemes that create the appearance they have developed sophisticated artificial intelligence platforms – but instead of being rooted in artificial intelligence, the offerings too often are nothing more than frauds.”
They are also alleging that Caragaceanu has previously been involved in a series of ICOs, positioning tokens on the Ethereum blockchain and Binance Smart Chain.
Human intelligence processes
They allegedly touted the profitability of the tokens through internet websites and social media, claiming an early offering was tied to a “money making machine Artificial Intelligence Lab”, another crypto related to an African diamond and gold mining project, and a different asset had “the potential to go 1000x. Not 100x. Not just 100x. It’s 1000x”. The respondents also allegedly told investors they could stake certain tokens to earn even greater profits – as much as 2,000% per year.
“Artificial intelligence is designed to simulate human intelligence processes. It’s a highly sophisticated concept, but that doesn’t mean current investment schemes tied to artificial intelligence are as sophisticated,” said TSSB Enforcement Director Joe Rotunda.
“At least for now, many of these scams are simply promoting lucrative profits coupled with little or no risk. They’re publishing advertisements in social media, recruiting investors through direct messaging platforms, and creating internet websites that incorporate flashy graphics and technical terminology. Investors need to set aside emotion and objectively evaluate every offering – especially when pitched by an unknown person through the internet.”