Cryptocurrency scams are nothing new, and scammers are constantly finding new ways to deceive and swindle investors. One of the latest tactics involves mashing up two hot trends: artificial intelligence (AI) and crypto. Scammers are using AI to create fake CEOs and make exaggerat...
The scammers’ tactics
The DFPI accused Maxpread Technologies, Harvest Keeper, Visque Capital, Coinbot, and QuantFund of offering unqualified securities and making false promises to investors. The companies claimed to use AI to maximize crypto trading returns and promised daily returns on investments ranging from 0.6% to 4.81%. But the DFPI called these claims false, labeling the companies Ponzi schemes.
Maxpread Technologies went even further, allegedly attempting to trick investors about the identity of its CEO using a fake, AI-generated avatar programmed to recite a script. In a YouTube video posted to its official Maxpread account, a claimed CEO named “Michael Vanes” gave an address about the company’s launch. However, Maxpread’s real CEO is Jan Gregory, who the company had called its chief marketing officer and corporate brand manager.
Harvest Keeper, another targeted company, allegedly hired an actor to play its CEO. Although no AI-generated leaders were involved in that case, the firm still claimed to use AI to maximize crypto trading returns.
DFPI serves cease and desist orders
It is important to be vigilant when it comes to cryptocurrency investments and to do your research before handing over your money to anyone. The regulator also urged the public not to fall for promises of high returns or claims of using AI to generate profits. And if they come across such suspicious investment opportunity, they should report it to their state’s financial regulator or law enforcement agency.