According to a statement from commissioner Travis J. H. Hughes, a member of the Texas State Department of Justice (CSJD).
Isles (Travis J. Iles), the commission took action against Horatiu Charlie Caragaceanu, founder of The Shark of Wall Street and Hedge4.ai.
The investigation was conducted jointly with the Alabama Securities Commission, the Montana Auditor, the Kentucky Department of Financial Institutions, and the New Jersey Bureau of Securities.
Texas regulator says: The Shark of Wall Street and Hedge4.ai were not registered with the state as broker-dealers. Karagachanu positions its firms as artificial intelligence labs.
The businessman claims that TruthGPT Coin uses an AI model called Elon Musk AI, which can analyze cryptocurrencies, predicting their rates and distinguishing profitable investments from scams.
The creators of the project promise investors that TruthGPT’s rate will increase 10,000 times.
Investors are persuaded that Elon Musk, CEO of Tesla and SpaceX, supports the crypto-asset, while Changpeng Zhao, CEO of the cryptocurrency exchange Binance, and Vitalik Buterin, co-founder of Etherium, are also participants in the ecosystem.
The commissioner noted that Karagachanu, The Shark of Wall Street and Hedge4.ai have previously conducted initial coin offerings (ICOs), offering tokens based on Ethereum and Binance Smart Chain blockchains.
Caragachanu promised investors returns of up to 2000% per year, but the advertised tokens were never placed for trading on major cryptocurrency exchanges and are now worthless.
“There’s a lot of hype around artificial intelligence right now, it’s being talked about in the media and on social networks, being used in various sectors of the economy.
However, the perpetrators are trying to capitalize on the public interest. They claim to have developed sophisticated platforms, but often their offerings turn out to be scams,” said Commissioner Isles.
Binance executives recently reported that someone was using artificial intelligence to misinform the trading platform and its CEO Changpeng Zhao.
ChatGPT informed users that Zhao was a prominent functionary of the Chinese Communist Party.