The U.S. Securities and Exchange Commission (SEC) has settled charges with Rimar, a trading firm that allegedly provided false information to investors about its claims to use artificial intelligence (AI) to perform automated trades in cryptocurrencies and other assets.
The SEC said Itai Liptz, owner and CEO of Rimar LLC and Rimar USA, and Cliffard Boro, a member of the Rimar USA board of directors, received nearly $4 million from 45 investors by claiming that AI could be used to trade cryptocurrencies, stocks, bonds and other investments.
In reality, the SEC pointed out that the company did not use AI, and the claims of using emerging technologies were just "buzzwords" used to fool investors, which the agency called "AI-washing."
Rimar USA agreed to settle the charges and pay a total of $310,000 in civil penalties without admitting or denying the regulator's findings. (Decrypt)