AI & Actors Used to Fake Crypto Execs: California Regulator

• California Department of Financial Protection and Innovation issued desist and refrain orders against five entities purporting to use AI to trade crypto assets.
• Two of the firms are accused of using actors and AI to impersonate CEOs.
• The entities allegedly used hype surrounding AI to lure investors with promises of high returns.

California Regulator Cracks Down on Crypto Investment Schemes

The California Department of Financial Protection and Innovation (DFPI) has issued desist and refrain orders against five entities alleged to have been offering fraudulent investment schemes related to cryptocurrency trading. Two of the firms are accused of using actors and artificial intelligence (AI) to falsely portray their CEOs.

Allegations Against Firms

The DFPI alleges that the firms were taking advantage of the hype surrounding AI in order to lure investors with promises of high returns through their purported knowledge, skill, experience, and technology in crypto asset trading. The regulator also claims that some firms had implemented multi-level marketing schemes which rewarded investors for recruiting others.

Maxpread Technologies

One firm named Maxpread Technologies is alleged to have used an AI-generated avatar called “Michael Vanes” as its CEO in promotion videos published on YouTube. Harvest Keeper was accused by the DFPI for having hired an actor portrayed as its CEO Markus Peters, falsely claiming he was responsible for generating ideas about the company’s offerings.

Aim Of Regulations

The aim of these regulations is protect vulnerable investors from being scammed into investing money into such fraudulent activities without proper due diligence or understanding them fully beforehand.

Conclusion

The DFPI has warned investors not be taken in by promises made by such companies which offer incredible returns through their supposed expertise in cryptocurrency trading via AI-assistance as they may not be true or genuine investments opportunities at all. It advises investors undertake thorough research before investing funds into any crypto related endeavour.