Californian Financial Watchdog issues cease & desist order against 5 crypto companies over ponzi types crypto trade & investment services.
On 19 April 2023, The California Department of Financial Protection and Innovation (DFPI) issued an order against a total of 5 crypto companies over “fraudulent investment schemes”.
Issued desist and refrain order by DFPI agency noted that few of these ponzi investment plans based crypto companies are using AI Technology to represent their services.
Scammers like to deceive investors by using phony CEOs, sham algorithms, & Ponzi schemes. Today, we've issued desist and refrain orders to five entities/individuals who violated CA securities laws. For more information: https://t.co/gj13z2OE4G#investing #hyip #Cryptonews pic.twitter.com/MXHPYwVIny
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— CA Department of Financial Protection & Innovation (@CaliforniaDFPI) April 19, 2023
The DFPI agency targeted AI trade bots Harvest Keeper, Visque Capital, Coinbot, and QuantFund, along with Maxpread Technologies and its CEO Jan Gregory Cerato.
In particular, Californian Financial Watchdog noted that Maxpread is representing itself as a very big innovation and also representing its services with the help of an AI-generated fake CEO.
Fake CEO’s speech can be seen here:
These crypto investment websites are providing more than 3% return on investment per day, which is not a strange thing in the crypto sector.
Crypto Ponzi investment plans
As we know that the Crypto sector is something different from the traditional stock market and here some extra effort is always needed to put to understand crypto & blockchain technology.
In 2015, many bad actors jumped into the crypto sector with ponzi crypto investment schemes & easily tricked innocent newbie crypto investors.
Between 2015 to 2016, many websites jumped into the crypto sector with the concept of cloud mining investment plans and attracted huge numbers of investors. Hashocean was one of the top websites which went down in 2016. Nowadays it is very rare to see Ponzi crypto investment plans supported websites because the educational level among the Crypto investors is now up and it is not easy to trick any crypto Investor.
Read also: Defi protocol “Unlock” hacked for 20 Ethereum
Californian watchdog targets 5 crypto companies over ponzi investment plans
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