Cryptocurrency trading platform YieldTrust.ai and its Romanian owner, Stefan Ciopraga, have been accused of running a Ponzi scheme by regulators from Montana, Texas and Alabama. YieldTrust.ai claimed that its decentralised application, YieldBot, was powered by cutting-edge artificial intelligence that was capable of executing 70 times more trades with 25 times higher profits than any human trader could, generating returns of up to 2.2% per day.
However, the regulators have alleged that the AI-powered bot did not exist and that YieldTrust.ai was raising capital from the public to cover withdrawals from prior investors. YieldTrust.ai’s online presence, including its website and Twitter account, has been removed. In response to the alleged Ponzi scheme, regulators have ordered YieldTrust.ai to halt all activities and imposed a total fine of $100,000.
