TruthGPT Coin, the so-called “investment opportunity” that relied on deceptive tactics, has come under fire from Texas state regulators who are cracking down on what they describe as a phony securities scheme that preys on people’s interest in AI.
Using fake avatars and celebrity endorsements, including Tesla and Twitter CEO Elon Musk, the fraudulent promoters behind the AI investment scam hoped to lure in unsuspecting investors.
The Emergency Cease and Desist Order filed by Lone Star authorities targets The Shark of Wall Street, Horatiu Charlie Caragaceanu, and Hedge4.ai.
TruthGPT Coin AI System, Profit Claims Draw Regulators’ Attention
The TruthGPT Coin is being advertised as a cryptocurrency that uses an AI system named Elon Musk AI. According to the promoters, the AI model has the ability to analyze multiple digital assets, predict future cryptocurrency values, and differentiate profitable investments from bogus ones.
However, the state regulators in Texas have raised concerns about TruthGPT Coin and its creator, who were identified during routine market surveillance of different artificial intelligence products.
Image: Chitkara University
The regulators assert that the cryptocurrency and its affiliated parties are falsely promoting it as a highly lucrative venture, claiming that it could potentially increase in value by a whopping 10,000 times.
Authorities have also expressed doubt about the capabilities of the “Elon Musk AI” system and the promoters’ claims about its predictive abilities. As a result, they have taken steps to investigate and possibly shut down the deceptive cryptocurrency scheme.
Emergency Order Issued Vs. TruthGPT Coin For False Promotion
An Emergency Cease and Desist Order claims that investors are being deceived into believing that Musk has endorsed the cryptocurrency, with the use of fake animated avatars and images to create the impression of his support.
Furthermore, the promoters have allegedly featured other prominent public figures, including Vitalik Buterin, co-founder of Ethereum, and Changpeng “CZ” Zhao, founder and CEO of Binance, to falsely advertise the legitimacy of the cryptocurrency.
BTCUSD falls back to the $28K level after briefly touching $29K. Chart: TradingView.com
In response to the fraudulent activities of TruthGPT Coin, Joe Rotunda, the Enforcement Director of the Texas State Securities Board, has urged investors to remain vigilant and to carefully scrutinize every offering they encounter, particularly those promoted online by suspicious individuals.
Although Musk has expressed his interest in developing an AI tool named TruthGPT, it should be noted that this project is entirely separate from the TruthGPT Coin mentioned in the Emergency Cease and Desist Order.
Musk’s TruthGPT AI tool has not been announced to involve a cryptocurrency token nor does it have any affiliation with the deceptive cryptocurrency scheme cited in the order.
-Featured image from Romulus Mihu