The Commodity Futures Trading Commission issued a consumer warning Thursday about scams using artificial intelligence, some of which use cryptocurrency arbitrage algorithms to promise huge profits.
“With the increasing use of AI in our daily lives, fraudsters are claiming that they can use bots, trading signal algorithms, cryptocurrency asset arbitrage algorithms, and other AI-enabled technologies to generate massive profits,” the agency said in a statement. . , adding that social media influencers can spread false promises of quick profits.
The agency said, “Don’t trust scammers. AI technology cannot predict the future or rapid market changes.”
Billions of Dollars Worth of Bitcoin Lost
The CFTC said it had uncovered several fraud schemes involving references to AI. One of them resulted in the loss of 30,000 Bitcoins, worth about $1.7 billion at the time.
“Unfortunately, AI has become yet another means for malicious actors to defraud unsuspecting investors,” Melanie Devoe, head of the CFTC’s Office of Customer Education and Support, said in a statement.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
About the author
Anna is a senior policy reporter at The Block. She has a background in political journalism and has covered Russian civil society for various media outlets in Moscow, including her award-winning newspaper, Novaya Gazeta. Before joining The Block, Anna spent the past five years researching global cryptocurrency policy and adoption at CoinDesk. Anna says she owns Bitcoin and gift NFTs that have sentimental value.