Categories: MarketsMenafn

Texas Authorities Crack Down on TruthGPT Coin Crypto Scam Allegedly Endorsed By Elon Musk

The Texas State Securities Board (Texas SSB) recently initiated an investigation into the AI-based crypto scam, TruthGPT Coin. This fraudulent scheme has been linked to false endorsements from notable figures in the tech and cryptocurrency world, including Elon Musk, Changpeng Zhao, and Vitalik Buterin.

The Rise of Rug Pulls and Crypto Scams Exploiting AI Hype

Over the past few weeks, multiple rug pulls, and crypto scams have emerged, with bad actors taking advantage of the growing enthusiasm for artificial intelligence (AI) to swindle investors. The TruthGPT Coin scam is the latest in fraudulent activities targeting unsuspecting victims.

According to a press release issued by the Texas SSB, the individuals behind TruthGPT Coin, Horatiu Charlie Caragaceanu, The Shark of Wall Street, and Hedge4.ai, falsely claimed that their coin would yield a staggering capital appreciation of 10,000 times. They also boasted about their AI model, dubbed “Elon Musk AI,” which they asserted could analyze cryptocurrencies, predict future prices, and even identify scam investment projects.

The Texas SSB has revealed that the project’s creators fabricated the involvement of well-known personalities such as Elon Musk, Changpeng Zhao, and Vitalik Buterin to lend credibility to their deceitful scheme.

Elon Musk’s True AI Startup and the Misleading TruthGPT Coin

Contrary to the claims made by the scammers, Elon Musk plans to launch an AI startup called TruthGPT. The venture aims to compete with OpenAI’s ChatGPT. The TruthGPT Coin project, however, is merely exploiting the hype surrounding Musk’s genuine endeavor.

In light of the ongoing investigation, regulators have issued an emergency cease and desist order against the TruthGPT Coin project. This order mandates that the project immediately cease all activities deemed illegal.

Securities Commissioner Travis Iles commented on the issue, stating, “Artificial intelligence is buzzing. It’s received extensive coverage by traditional media, is trending in social media, and has the potential to impact many industries. Unfortunately, bad actors continue their attempts to capitalize on this widespread public interest.”

He further explained, “They’re devising schemes that create the appearance they have developed sophisticated artificial intelligence platforms – but instead of being rooted in artificial intelligence, the offerings too often are nothing more than frauds.”

The post Texas Authorities Crack Down on TruthGPT Coin Crypto Scam Allegedly Endorsed By Elon Musk appeared first on CryptoMode.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

Recent Posts

BeCEXy Platform Moves From Beta to Full Launch, Uniting the Tap-To-Earn Ecosystem

After six months of successful beta testing, BeCEXy announces the full launch of its platform.…

14 hours ago

$IONIX Chain Leads Best Crypto Presale ICO in 2025 as ETH and BTC Rise

Dubai, UAE, 29th October 2025, ZEX PR WIRE, As traditional cryptocurrency giants like Bitcoin and…

15 hours ago

Zero Trade Limited l The #1 Forex Trading Platform for Brokers — Expands Global Offering with Integrated CRM and Business Formation Support in Dubai and UK

Dubai, UAE, 29th October 2025, ZEX PR WIRE, ZeroTrade Limited, a leading forex trading platform provider…

15 hours ago

Japan Launches Yen-Pegged Stablecoin Under New Regulations

Japan introduced its first yen-pegged stablecoin under domestic regulations on October 27, 2025, as startup…

2 days ago

Payments MCP: Coinbase links AI agents to crypto via x402

Coinbase has launched Payments MCP, a Model Context Protocol implementation that gives AI agents access…

6 days ago

Agrifi AGF Token Transforms DeFi with Real Farmland Utility and On-Chain Yields

Estonia, 22nd October 2025, ZEX PR WIRE, AgriFi, a blockchain-powered agricultural finance protocol, is redefining…

1 week ago