Cryptocurrency has disrupted numerous industries and continues to revolutionize the way people think of money and trading. Yet, just as with traditional investments, crypto also comes with its fair share of scams and con artists. One such example is Horatiu Charlie Caragaceanu and his organizations, The Shark of Wall Street and Hedge4.ai, who have recently been under scrutiny by the Texas State Securities Board for promoting two cryptocurrencies – TruthGPT Coin and Elon Musk AI Token.

10,000x Value Increase: TruthGPT Coin Claims

The TruthGPT Coin is advertised as a cryptocurrency powered by the conveniently named “Elon Musk AI”. According to the promotional material, this revolutionary AI system can analyze different digital assets, forecast future cryptocurrency values, and identify lucrative investments from fraudulent ones. Furthermore, the parties involved boldly claim that TruthGPT Coin could potentially increase in worth by a massive 10,000 times.

However, the Texas State Securities Board found that investors are being falsely informed of Elon Musk’s endorsement of TruthGPT Coin, and suspiciously, were presented with ‘animated avatars and images’ of Musk in order to create the illusion of his support. Promotional material appearing to feature the likes of Changpeng “CZ” Zhao and Vitalik Buterin was also uncovered.

“Bad actors continue their attempts to capitalize on this widespread public interest,” announced Securities Commissioner Travis J. Iles in response to the discovery. And Joe Rotunda, the State Securities Board’s enforcement director, went on the record to caution investors against con artists and their deceptive tactics, especially when they are marketed via the internet.

Beware of Buzzwords: Pump-and-Dump Schemes in Cryptocurrency

Cryptocurrency’s meteoric rise in recent years has resulted in a surge of interest in digital assets. As such, we can consider this fraudulent scheme as a warning sign, warning us of the need for constant caution and due diligence in the crypto industry.

Although buzzwords such as ‘artificial intelligence’ can entice investors, more often than not, con artists exploit these same buzzwords in attempts to ‘pump-and-dump’ schemes, a practice that’s sadly all too common in the world of cryptocurrency. Data gathered by Chainalysis reveals that 24% of tokens launched in 2022 experienced price declines in their first week, a sign of pump-and-dump activity.

This instance highlights the importance of researching thoroughly any investments made into cryptocurrency, and it is especially prevalent when it comes to the use of artificial intelligence. As the director of Montana’s securities commission, Troy Downing pointed out, scammers are now attempting to use AI “by developing high-tech ploys to deceive investors”.

YieldTrust.ai Discontinues Operations Following Regulatory Scrutiny

The Texas State Securities Board was, once again, brought into action when company YieldTrust.ai, purported to be “a decentralized application powered by cutting-edge artificial intelligence”, claimed it could generate “returns for new investors of up to 2.2% per day” via its YieldBot DApp.

The Texan, Montanan and Alabamian regulators who examined YieldTrust’s white paper did not find any proof that an AI-driven bot on Binance’s BNB Smart Chain, as YieldTrust claimed, actually existed – let alone could actually deliver the returns they promised. What’s more, the audit of its smart contract found it to be “dangerous”, as it was observed that the creators retained enough control over the system to stop users from withdrawing their funds.

In the wake of this incident, YieldTrust.ai has since discontinued its operations. The Texas State Securities Board issued a cease and desist order demanding the company cease its activities and pay a $100,000 fine.

Staying Vigilant in the Market

It is now more important than ever for investors to practice caution when it comes to investing in the cryptocurrency markets. Scams exist, but the market does not make it difficult to spot a potential con artist – especially when it involves artificial intelligence.

As such, staying up-to-date with current news and investors’ experiences is a crucial way of protecting yourself from being conned by audacious con artists such as Horatiu Charlie Caragaceanu and his organizations The Shark of Wall Street and Hedge4.ai.

Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

The post Crypto Con-Artist Traps: Beware the Shark of Wall Street and Hedge4.ai appeared first on Boxmining.

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Filed under: Bitcoin - @ May 4, 2023 5:19 am