The financial world is no stranger to scams and fraudulent schemes, and the crypto industry has recently come under fire as a series of companies have been accused of running elaborate investment schemes. The California Department of Financial Protection and Innovation (DFPI) has issued desist and refrain orders against several crypto firms, alleging the use of artificial intelligence (AI) and actors to impersonate CEOs and create a false sense of legitimacy. Among the accused companies are Harvest Keeper, Visque Capital, Coinbot, QuantFund, Maxpread Technologies, and its CEO, Jan Gregory Cerato. In an unusual twist, Maxpread Technologies and Harvest Keeper have been accused of using AI-generated avatars and actors to fake their CEOs’ identities. Maxpread Technologies allegedly employed an AI-generated avatar named “Michael Vanes” as its CEO, marketing its products through YouTube promotions. Likewise, harvest Keeper, a purported crypto trading firm, has been accused of hiring an actor to impersonate its CEO, Markus Peters, who was presented as the company’s leader and primary source of ideas. The DFPI alleges that these entities capitalized on the growing interest in AI to attract investors with promises of substantial returns. These firms claimed to utilize AI technology to trade crypto assets, generating impressive profits for their investors. Additionally, they were said to have used multi-level marketing schemes to incentivize investors to recruit others.
Full story : Exposing Fraudulent Crypto Firms: AI and Actors in Elaborate Scams.
