Texas Cracks Down on AI Crypto Scam Endorsed by Elon Musk

An emergency ceases and desist order has been issued by Texas authorities against TruthGPT Coin, an AI crypto scam allegedly supported by Elon Musk, Vitalik Buterin, and Changpeng Zhao. The project claimed its AI model, Elon Musk AI, could predict future cryptocurrency prices and identify scam investments. Regulators found that it falsely created the appearance of having the backing of popular personalities. This is one of many recent rug pulls and crypto scams utilizing the hype of artificial intelligence to defraud investors. Governments worldwide are now looking to regulate AI as bad actors attempt to capitalize on the technology's widespread public interest.