TruthGPT Coin, a so-called “investment opportunity” that relied on deceptive tactics, has come under fire from Texas regulators who are cracking down on what they describe as a fake securities scheme exploiting people’s interest in artificial intelligence.
Using fake avatars and celebrity endorsements, including Tesla and Twitter CEO Elon Musk, the fraudulent promoters behind the AI investment scam hoped to lure unsuspecting investors.
the Emergency stop and desist order Submitted by Lone Star Authorities targeting The Shark of Wall Street, Horatiu Charlie Caragaceanu, and Hedge4.ai.
TruthGPT Coin AI System, Profit Claims Attract Regulators’ Attention
TruthGPT is advertised as a cryptocurrency that uses Elon Musk’s AI system. According to the promoters, the AI model has the ability to analyze multiple digital assets, predict future cryptocurrency values, and distinguish between profitable investments and phantom ones.
However, state regulators in Texas have Raised concerns about TruthGPT Coin and its creator, who were identified during routine market monitoring of various AI products.
Image: Chitkara University
Regulators contend that the cryptocurrency and its affiliates are falsely promoting it as a highly profitable venture, claiming that it has the potential to increase its value by 10,000 times.
Authorities have also expressed skepticism about the capabilities of the “Elon Musk AI” system and claims made by promoters about its predictive capabilities. As a result, they have taken steps to investigate and potentially stop the fraudulent cryptocurrency system.
Issuance of emergency order vs. TruthGPT Coin for false promotion
The emergency cease and desist order alleges that investors are being duped into believing that Musk has endorsed the cryptocurrency, using fake images and gifs to create the impression of his support.
Moreover, the promoters have allegedly surfaced other prominent public figures, including Vitalik Buterin, co-founder of Ethereum, and Changpeng “CZ” Zhao, founder and CEO of Binance, to falsely advertise the legality of the cryptocurrency.
BTCUSD falls back to the $28K level after briefly touching $29K. Chart: TradingView.com
In response to TruthGPT Coin’s fraudulent activities, Joe Rotunda, Director of Enforcement at the Texas State Securities Board, urged investors to remain vigilant and carefully scrutinize every offer they encounter, especially those promoted online by shady individuals.
Although musk He showed interest When developing the AI tool called TruthGPT, it should be noted that this project is completely separate from the TruthGPT coin mentioned in the emergency cease and desist order.
Musk’s TruthGPT AI tool was not announced to include a cryptocurrency token and has no affiliation with the scam cryptocurrency scheme mentioned in the application.
Featured image by Romulus Mihu