ChainCatcher reported that the U.S. SEC has reached a settlement with trading firm Rimar over its allegations that the company provided false information to investors in its claims of using artificial intelligence (AI) to perform automatic trading of cryptocurrencies and other assets.
The SEC said Itai Liptz, owner and CEO of Rimar LLC and Rimar USA, and Cliffard Boro, a member of the Rimar USA board of directors, solicited nearly $4 million from 45 investors by claiming that they could use artificial intelligence to trade cryptocurrencies, stocks, bonds and other investments.
But in fact, the SEC pointed out that the company did not use artificial intelligence, and the claim of using emerging technologies was just a "buzzword" used to fool investors, which the agency called "AI-washing." Rimar USA agreed to settle the charges and pay a total of $310,000 in civil penalties without admitting or denying the regulator's findings.