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The United States Commodity and Futures Trading Commission (CFTC) has warned investors against artificial intelligence (AI) scams that are targeting crypto investors by promising unrealistic gains via crypto arbitrage algorithms.&nbsp; 
The regulator has been<a href="https://thecoinrise.com/cftc-charges-crypto-fraudsters-in-three-us-states/"> quite active in cracking down against digital asset platforms</a> that are operating Ponzi schemes and initiating exploits to loot investors’ money. The recent targets of the agency are scammers that promise outsized returns by using crypto-arbitrage algorithms.&nbsp; 
<h2 id="span-style-font-weight-400-cftc-issues-a-warning-for-investors-span">CFTC Issues a Warning for Investors</h2> 
In the<a href="https://www.theblock.co/post/274695/cftc-warns-about-ai-scams"> warning</a> against AI-driven scams, the CFTC described the “potential of AI technology to defraud investors with false claims that entice them to hand over their money or other assets to fraudsters who misappropriate the funds and deceive investors,” while adding: 
“With the growth of the use of AI in everyday life, scammers are making claims that it can generate huge returns using bots, trade signal algorithms, crypto-asset arbitrage algorithms, and other AI-assisted technology.” 
<h3 id="span-style-font-weight-400-social-media-influencers-spreading-false-info-span">Social Media Influencers Spreading False Info</h3> 
The CFTC also noted in the warning that<a href="https://thecoinrise.com/uk-regulators-taps-celebrity-to-caution-influencers-against-fraudulent-crypto-schemes/"> social media influencers on platforms like X</a> (formerly known as Twitter) and Instagram can also spread lies about such AI-fueled scammers to their extremely large user bases.&nbsp; 
“Don’t believe the scammers. AI technology can’t predict the future or sudden market changes,” the agency warned.&nbsp; 
The regulator claimed that it had pinned down several fraud schemes involving references to AI, with one of them duping investors of close to 30,000 bitcoins, which are worth north of $1.2 billion at the time of writing.&nbsp; 
<h2 id="span-style-font-weight-400-ai-is-a-venue-for-bad-actors-cftc-span">AI is a Venue for Bad Actors: CFTC&nbsp;</h2> 
The hype surrounding the AI industry has gone out of control, and the CFTC has asked investors to invest their money wisely and never fall into the trap of unreasonable promises. 
“When it comes to AI, this advisory is telling investors, ‘Be wary of the hype,’” said OCEO Director Melanie Devoe. “Unfortunately, AI has become another avenue for bad actors to defraud unsuspecting investors.” 
The CFTC also suggested investors “know the risks associated with the underlying assets” and “consider the impact fees, spreads, and subscription costs would have on returns.”&nbsp; 
<h3 id="span-style-font-weight-400-the-cftc-chair-warns-against-spot-bitcoin-etfs-span">The CFTC Chair Warns Against Spot Bitcoin ETFs</h3> 
As reported earlier today by TheCoinRise, CFTC Chair Rostin Behnam pointed out the risks associated with the<a href="https://thecoinrise.com/us-sec-grants-official-approval-for-a-spot-bitcoin-etf/"> approval of the spot Bitcoin ETFs</a> by the Securities and Exchange Commission (SEC).&nbsp; 
Behnam noted that the<a href="https://thecoinrise.com/cftc-chair-shares-concerns-over-recently-approved-spot-btc-etfs/"> lack of regulatory oversight in the digital asset sector poses risks</a> for investors who are putting their money in spot BTC ETFs.&nbsp; 
The post <a href="https://thecoinrise.com/cftc-warns-against-ai-scams-targeting-crypto-investors/">CFTC Warns Against AI Scams Targeting Crypto Investors</a> appeared first on <a href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

CFTC Warns Against AI Scams Targeting Crypto Investors

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