AI and Actors Used to Fake Crypto Execs: Regulator Cracks Down

• The 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 were accused of faking their CEOs, with Maxpread Technologies using an AI-generated avatar called ‘Michael Vanes’ and Harvest Keeper hiring an actor to play the role of its CEO, Markus Peters.
• The regulator is cracking down on high-yield investment products saying the programs raise hype with the promise of high returns before going dark.

California Regulator Cracks Down On Crypto Firms

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 in the form of artificial intelligence (AI)-assisted crypto trading services.

Firms Allegedly Used AI & Actors To Fake Executives

Two of the firms are said by DFPI to have faked their CEOs in order to promote their services. Maxpread Technologies was alleged to have used an AI-generated avatar called “Michael Vanes” to act as CEO and market its products, while Harvest Keeper purportedly hired an actor for its CEO, Markus Peters.

Regulator Targets High Yield Investment Products

The regulator is taking action against these investments because they are raising hype with promises of high returns while ultimately going dark. It warned investors that they could be at risk if they put money into such schemes.

Investment Schemes Raise Red Flags For Investors

Investors should always be wary when investing in any financial product, especially those that claim unusually high returns or employ technology like AI without a clear explanation about how it works or can provide profits for them. It is important for people to research companies carefully before deciding whether or not it is safe for them to invest their money in them.

Stay Informed To Avoid Getting Scammed

It’s also important for people to stay informed about current developments related to cryptocurrencies and other digital assets, so that they know what types of scams might be out there and how they can protect themselves from falling victim to one. By doing due diligence before investing in any type of asset, people can help ensure that their money is safe from fraudsters looking to take advantage of unsuspecting victims