Cryptocurrencies called TruthGPT Coin and Elon Musk AI Token are troubling regulators.
Texas officials are warning about tokens issued for fraud. However, local regulators are trying to prevent the incident by informing the public.
New Target of Scammers Elon Musk’s TruthGPT
Dubbed TruthGPT Coin and Elon Musk AI Token, the cryptocurrency backer is receiving stop and withdrawal orders from several state regulators, including Texas, which seeks to quell scams seeking to capitalize on the growing rhetoric around artificial intelligence.
Texas officials said in a statement that the cryptocurrencies are “part of a fraudulent securities scheme” that is allegedly perpetrated by related companies, including San Francisco resident Horatiu Charlie Caragaceanu and The Shark of Wall Street.
The issuer claims to have an artificial intelligence and machine learning prediction algorithm developed by Elon Musk to uncover lucrative ways to invest in tokens. They also add that they plan to take their company public.
Joe Rotunda, executive director of the Texas State Securities Board, said in an interview that tokens are the latest iteration of wrongdoers trying to leverage popular buzzwords and personalities to make money from unsuspecting investors. Additionally, Rotunda added that this initiative is trying to trick people by taking advantage of popularity.
