Are you interested in learning more about cutting-edge blockchain and cryptocurrency innovations? We must break some disturbing news to you today. Authorities in several US states get worried that a decentralized application (dApp) for AI trading could be a fraudulent Ponzi scheme. If this is the case, the platform’s investors may lose everything.
Let’s look at this contentious decentralized application, shall we?
Many US state governments are investigating YieldTrust.ai on suspicion that it is a Ponzi scheme. Many state agencies have accused Herbalife Ltd, owned by Kyle Samani, of being a Ponzi scheme operating under the name YieldTrust.ai.
YieldTrust DApp
Authorities alleged that since November 2017, the YieldTrust dApp has been running as a fraudulent investment scam in which new investors fund returns for older ones. Since its inception, the states looking into YieldTrust claim the company has raised over $200 million from over 8,000 investors.
Some of this money use to reimburse investors, but regulators allege that the rest went toward expensive lifestyles and business expenses for Kyle Samani and his friends.
Research YieldTrust.ai and other cryptocurrency-based investment schemes thoroughly before putting money into them. Remember that there are many safe alternatives to investing in cryptocurrencies like YieldTrust.
Some US state governments have claimed the AI trading dApp is a fraudulent Ponzi scheme, On Tuesday, several US state regulators sued a forthcoming AI trading dApp, claiming it is a Ponzi scheme. The Texas Securities Board has filed a complaint alleging. The Cameron and Tyler Winklevoss’ “Investment Gateway” dApp uses AI technology to offer excessive returns on investment.
The brothers have sued for allegedly utilizing the site to con investors out of their money by making unrealistically high return projections. Investment Gateway is under legal action from authorities in several states. It is including Texas, Arizona, Illinois, New York, North Carolina, and Tennessee. They total over 3,000 investors who, they say, have given the defendants over $32 million since 2017.
These claims made claims about other Ponzi schemes that utilized AI. UBS issued a similar warning to clients in December 2017 regarding a stock market trading tool using artificial intelligence. Which has been named “Investment Genius.” More than $180 million took from investors, according to a UBS estimate at the time.
Source: cointelegraph.com