Major AI-related fraud uncovered in the US
The U.S. Securities and Exchange Commission is accusing a Texas resident of illegally misappropriating more than $12 million from nearly 150 investors. This was reported by Zamin.uz.
The citizen, named Nathan Fuller, carried out a large-scale fraud scheme by promising guaranteed high returns using AI-based trading systems through his two major companies. International publications have provided detailed information regarding this incident.
According to official data, Fuller promised investors profits of 40 to 50 percent within a short period, specifically between one and one and a half months. In some cases, he deceived people by claiming he could double the invested funds in just three weeks.
He claimed that his specialized bots performed high-speed trading operations across various cryptocurrency markets. Additionally, to convince investors, he spread false information that all funds were state-insured.
Investigations revealed that more than half of the $12.3 million collected was spent by Fuller on personal needs and a luxurious lifestyle. The remaining funds were paid out as returns to old clients using funds attracted from new clients.
This is a classic example of a scheme known in economics as a financial pyramid. To conceal the crime and continue deceiving people, investors were regularly provided with fake reports and fabricated documents.
This case is a vivid example of crimes being committed under the guise of modern technologies, specifically artificial intelligence and cryptocurrencies. Similar large-scale fraud cases have been exposed previously.
Currently, regulatory bodies are taking strict measures against Fuller, including the confiscation of illegally acquired wealth and the imposition of heavy fines. Such cases require investors to be even more vigilant in any financial transactions.
