The U.S. SEC reaches a settlement agreement with the fake AI trading company Rimar Capital

PANews reported on October 11th, according to Decrypt, that the U.S. Securities and Exchange Commission (SEC) has reached a settlement with Rimar Capital, which was accused of falsely claiming to use artificial intelligence (AI) for automated trading of cryptocurrencies and other assets.

Rimar Capital's CEO Itai Liptz and board member Cliffard Boro raised nearly $4 million in funds by claiming to use AI technology, but in reality did not use any AI technology. Rimar USA agreed to pay a civil penalty of $310,000 and was subjected to an investment ban and associated person prohibition order. The SEC stated that as AI becomes more prevalent in the investment field, it will continue to crack down on similar "AI whitewashing" behaviors.