Regulators seek public input on AI scams, market influence
Regulators are shedding light on scammers leveraging the allure of artificial intelligence (AI) to promote crypto trading systems with faulty claims of high or guaranteed returns. With the trend of using automated software for trading increasing, the Commodity Futures Trading Commission (CFTC) issued a customer advisory stressing that these AI systems cannot foresee market movements definitively. See below. CFTC Customer Advisory Cautions the Public to Beware of Artificial Intelligence Scams: https://t.co/4SI2hwOPWq — CFTC (@CFTC) January 25, 2024 The customer advisory titled “AI Won’t Turn Trading Bots into Money Machines” exposes the fraudulent tactics used to attract investors, recounting tales like that of Cornelius Johannes Steynberg, who swindled over $1.7 billion in Bitcoin (BTC) from unsuspecting victims. The CFTC has subsequently advised traders to avoid seductive assurances of high gains from AI-assisted tools, warning that such exaggerated claims often fail to...