Texas Regulators Target Promoter of Fraudulent Cryptocurrencies, Including TruthGPT and Elon Musk AI Token

Regulators in Texas have set their sights on an entrepreneur based in San Francisco, accusing him of promoting two fraudulent cryptocurrencies that aim to capitalize on Elon Musk’s artificial intelligence pursuits.

According to Bloomberg’s report on May 3, the Texas State Securities Board (TSSB) has filed a cease-and-desist order against the Horatiu Charlie Caragaceanu and his company, The Shark of Wall Street, alleging that the two cryptocurrencies – Elon Musk AI Token and TruthGPT Coin – are “part of a fraudulent securities scheme.”

Joe Rotunda, enforcement director for the TSSB, said that the tokens’ names are intended to capitalize on Musk’s popularity and AI efforts. He also suggested that Caragaceanu’s claims that the tokens are powered by an AI algorithm developed by Musk to create trading strategies are false. The TSSB has attempted to contact Musk but has not received a response.

Caragaceanu’s previous assets, including various non-fungible tokens (NFTs) and a Shark of Wall Street token, have reportedly lost their value. The TSSB’s filing also names The Shark of Wall Street as a promoter of the two cryptocurrencies.

The case highlights the risks associated with investing in cryptocurrencies, particularly those that appear to be linked to high-profile figures or popular trends. Regulators are increasingly scrutinizing the cryptocurrency industry, and investors are advised to exercise caution and conduct thorough research before investing in any digital asset.

The TSSB’s action against Caragaceanu and The Shark of Wall Street is the latest in a series of efforts by regulators to crack down on fraudulent cryptocurrency schemes. In recent months, authorities in the United States and around the world have taken action against individuals and companies promoting fraudulent cryptocurrencies or engaging in other illegal activities involving digital assets.

As cryptocurrencies continue to gain mainstream acceptance and adoption, it is likely that regulators will continue to ramp up their efforts to protect investors and crack down on fraudulent schemes. In the meantime, investors must remain vigilant and exercise caution when investing in digital assets, particularly those that appear to be linked to popular trends or high-profile figures.

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