Crypto firms alleged to have faked execs using AI and actors: Cali regulator
A number of firms claiming to offer artificial intelligence (AI) assisted crypto trading services have been hit with allegations of being “fraudulent investment schemes” by a California financial regulator, with two accused of using actors and AI to impersonate CEOs.
On April 19 the California Department of Financial Protection and Innovation (DFPI) issued desist and refrain orders against five entities purporting to use AI to trade crypto assets including Harvest Keeper, Visque Capital, Coinbot, and QuantFund, along with Maxpread Technologies and its CEO Jan Gregory Cerato.
Scammers like to deceive investors by using phony CEOs, sham algorithms, & Ponzi schemes. Today, we've issued desist and refrain orders to five entities/individuals who violated CA securities laws. For more information: https://t.co/gj13z2OE4G#investing #hyip #Cryptonews pic.twitter.com/MXHPYwVIny
According to the regulator two of the firms even faked their CEOs. The purported technology firm Maxpread is alleged to have used an AI-generated avatar called “Michael Vanes” to act as CEO and market its products, with the supposed avatar appearing in YouTube promotions.
Harvest Keeper, which claims it's a crypto trading firm, was accused of having hired an actor to play the role of its CEO Markus Peters. The DFPI said Harvest described Peters as being the “leader” and “main generator of ideas.”
According to the DFPI, the entities were taking advantage of the hype surrounding AI to lure in investors with the promise of “incredible returns” by claiming to use the technology to trade crypto assets and — amongst other allegations — use multi-level marketing schemes to reward investors for recruiting others.
“The pitch was simple” the DFPI said, adding:
The DFPI
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