A trading firm, Rimar Capital, settled charges with the SEC for allegedly deceiving investors by falsely claiming AI capabilities to raise nearly $4 million. Rimar Capital, Rimar Capital USA, CEO Itai Liptz, and board member Clifford Boro paid a $310,000 civil penalty without admitting guilt. The SEC accused them of using AI 'buzzwords' to attract investors to their AI-driven trading platform for cryptocurrencies, equities, and futures. Despite claiming significant assets under management and impressive performance, the firm had no trading application and exaggerated its financial standing. Liptz misused company funds for personal expenses, leading to penalties and industry bans. The SEC ordered them to cease fraudulent activities. This case highlights the importance of transparency in the investment sector, especially with the growing trend of AI integration. Read more AI-generated news on: https://app.chaingpt.org/news