The SEC has reached a settlement with cryptocurrency trading firm Rimar over allegations of deceiving consumers, involving nearly $4 million

2024-10-11 09:27:36

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ChainCatcher News, the U.S. SEC has reached a settlement with trading firm Rimar regarding its allegations that the company provided false information to investors about its claims of using artificial intelligence (AI) to execute automated trading in cryptocurrencies and other assets.

The SEC stated that Itai Liptz, the owner and CEO of Rimar LLC and Rimar USA, along with Rimar USA board member Cliffard Boro, claimed they could use AI to trade cryptocurrencies, stocks, bonds, and other investments, raising nearly $4 million from 45 investors.

However, the SEC pointed out that the company did not actually use AI, and the claim of using emerging technologies was merely a "buzzword" to deceive investors, which the agency referred to as "AI-washing." Rimar USA agreed to settle the allegations and will pay a total of $310,000 in civil penalties without admitting or denying the findings of the regulatory investigation.

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