An AI investment scam used a false endorsement by Elon Musk and his connection to TruthGPT, a cryptocurrency linked to artificial intelligence technology.
Texas Cease And Desist Ordered Against TruthGPT Coin Scam
The Texas State Securities Board announced on May 3 2023 that Securities Commissioner Travis J. Iles had entered an emergency cease and desist order to stop the scheme. The action was ordered against Horatiu Charlie Caragaceanu and his organizations, The Shark of Wall Street and Hedge4.ai.
According to the board, Caragaceanu claimed that his companies were “artificial intelligence labs” and that they were promoting TruthGPT Coin, a cryptocurrency that would supposedly use an artificial intelligence model called Elon Musk AI.
The order said investors were “being told Elon Musk endorses TruthGPT Coin, and animated avatars and images of Elon Musk are being used to demonstrate his endorsement.”