California regulators have sent cease and desist letters to five companies, including Maxpread Technologies, that allegedly tried to profit from the AI hype train to deceive and swindle would-be investors. The companies offered unqualified securities, made false promises and exaggerated claims about using AI for crypto trading to generate high returns. The regulators accused Maxpread of tricking investors about the identity of the CEO using a fake, AI-generated avatar programmed to recite a script, as well as employing a real actor to play its CEO. The California Department of Financial Protection and Innovation has vowed to protect consumers and investors by going after such unscrupulous actors.
