US State Regulators Go After AI Trading DApp

Securities regulators in Montana, Texas, and Alabama have filed enforcement actions against YieldTrust.ai, a cryptocurrency trading platform, alleging it is operating a Ponzi scheme.

YieldTrust.ai and its owner, Stefan Ciopraga, claimed that their decentralized utility (DApp) called “YieldBot” is powered by synthetic intelligence and can perform 70 times more trades with 25 times greater profits than a human trader, based on statements made by regulators from Montana, Texas, and Alabama on April 4.The regulators alleged YieldTrust didn’t present “any proof” to traders that the unreal intelligence (AI)-powered bot exists, “not to mention that it’s performing on the stage YieldTrust.ai claims.”

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Montana’s regulator said in its stop and desist order that YieldBot was developed for Binance’s BNB Sensible Chain and will interface with staking packages to generate returns for brand-spanking new traders of as much as 2.2% per day using: “[Analyzing] the crypto markets and – in milliseconds – make its personal buying and selling choices, autonomously selecting from lots of of buying and selling strategies and chaining them collectively to create distinctive methods – reaching an exhilarating efficiency.”