Multiple US state regulators allege AI trading dApp is a Ponzi scheme
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Securities regulators from Montana, Texas, and Alabama have jointly filed enforcement actions against cryptocurrency trading platform YieldTrust.ai alleging it is “perpetrating a Ponzi scheme.”
According to April 4 statements from the
However, the regulator’s orders accuse YieldTrust.ai of “raising capital from the public to cover withdrawals from prior investors,” which alongside the promise of high returns are the characteristics of a Ponzi scheme.
YieldTrust.ai’s website has been taken offline and its Twitter account deleted. Cointelegraph was unable to contact YieldTrust.ai or Ciopraga for comment.
AI has become far more prominent, accessible and surrounded by hype since the release of the ChatGPT AI chatbot on Nov. 30 by AI research company OpenAI.
Despite its inaccuracy at times, ChatGPT has proved to be a powerful tool, with the latest version capable of acing the bar, SATs, and even identifying exploits in smart contracts.
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