Scammers Exploit Fame of Musk, CZ and Buterin in Texas Fraud Case
By Kateryna Salnichenko 434 11 May 2023
Amid the hype surrounding AI projects, there has been a surge in activity from crypto scammers promoting AI-related coins. The Texas State Securities Board, with the support of several other regulators, is cracking down on one such scheme.
Travis J. Iles, the commissioner of the Texas State Securities Board, has issued an order to halt the investment scheme of Horatiu Charlie Caragaceanu and his projects, The Shark of Wall Street and hedge4.ai, amid the hype surrounding AI-related projects in the cryptocurrency world.
Not only the Texas State Securities Board but also the New Jersey Bureau of Securities, the Kentucky Department of Financial Institutions, the Alabama Securities Commission, and the Montana state auditor are opposing Karagachan's activities.
According to statements made by Caragaceanu, The Shark of Wall Street, and Hedge4.ai are artificial intelligence laboratories. The projects are positioned as "100x startups," "spy agencies," and "Pepe killers." Their specialists are ethical hackers and machine learning programmers.
The cornerstone of the projects lies in the TruthGPT Coin cryptocurrency, touted as the centerpiece of the scheme. Its underlying technology draws upon the acclaimed Elon Musk AI. The cryptocurrency offers a gamut of functionalities such as the analysis of virtual assets, prognostication of their value, and identification of lucrative and unscrupulous investments. One of the main advantages of The Shark of Wall Street and Hedge4.ai is the profitability of TruthGPT Coin. Coin holders are being persuaded that its price will increase by tens of thousands of times.
Additionally, developers are showcasing other advantages to potential investors. They use animated avatars of Elon Musk, who supposedly supports the projects, and statements regarding Vitalik Buterin and CZ's involvement with the token could be found on the token's website. However, at the time of writing this article, the website is not loading, and the following text is displayed on the home page:
According to regulators, companies led by Caragaceanu issued coins on Ethereum and Binance Smart Chain as part of an ICO. Advertising campaigns were actively carried out on social networks and thematic sites, convincing investors of the potential of the cryptocurrency and the future increase in value by hundreds or thousands of times. In reality, TruthGPT Coin was never listed on major cryptocurrency exchanges, and its actual value is zero.
TruthGPT Coin was not registered in Texas, and Karagachan, The Shark of Wall Street and Hedge4.ai do not have an official status as dealers or agents. They have 30 days to request a hearing on their case.