- Creator claims TruthGPT predicts how the prices of digital assets will evolve in the future
- He's telling investors the value of TruthGPT will go up 10,000 times
- The tokens the scammer previously offered never gained value
Travis J. Iles, Securities Commissioner of the state of Texas, entered an urgent Cease and Desist Order to put an end to an investment scheme said to be endorsed by Elon Musk and powered by artificial intelligence, according to a post on the Texas State Securities Board website.
The Board is leading a group of regulators in taking punitive actions against the purported perpetrator Horatiu Charlie Caragaceanu and his companies, Hedge4.ai and The Shark of Wall Street.
TruthGPT can predict future digital asset prices
Allegedly, Caragaceanu is describing his organizations as AI labs operating via ML programmers and ethical hackers. The order states he is promoting the crypto TruthGPT Coin, which reportedly uses an artificial intelligence model called Elon Musk AI.
This model is said to predict how the prices of digital assets will evolve in the future and tell lucrative investment opportunities apart from scams.
The potential defendant is also marketing the profitability of TruthGPT Coin, claiming its value will go up 10,000 times.
CZ, Buterin also involved
The regulator claims Caragaceanu is telling investors Elon Musk supports TruthGPT Coin, and is using animated avatars and images of the hectobillionaire to prove his endorsement. The website for the crypto suggests Binance CEO Changpeng “CZ” Zhao and Ethereum founder Vitalik Buterin are also part of the ecosystem.
Commissioner Iles said:
Artificial intelligence is buzzing. Bad actors continue their attempts to capitalize on this widespread public interest. They’re devising schemes that create the appearance they have developed sophisticated artificial intelligence platforms – but instead of being rooted in artificial intelligence, the offerings too often are nothing more than frauds.
According to the regulators, Caragaceanu and his organizations engaged in a number of initial coin offerings (ICOs) in the past, deploying tokens on Binance and Ethereum. Allegedly, he also told investors they could stake crypto for an annual return of as much as 2000%.
The tokens he previously offered never gained value despite his representations. Currently, the fair market value of each of them is zero.
