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Cryptocurrency Platform YieldTrust.ai Faces Enforcement Actions Amid Ponzi Scheme Allegations by Multiple US State Regulators

Cointime Official

Securities authorities in Montana, Texas, and Alabama have collectively initiated enforcement proceedings against the cryptocurrency trading platform YieldTrust.ai, accusing it of executing a Ponzi scheme.

According to April 4 statements from the Montanian, Texan and Alabamian regulators, YieldTrust.ai and its Romanian proprietor, Stefan Ciopraga, asserted that their decentralized application (dApp) named "YieldBot" employs advanced artificial intelligence (AI) technology, enabling it to perform 70 times more trades and generate 25 times greater profits compared to any human trader. However, the regulatory authorities contend that YieldTrust has failed to present any evidence substantiating the existence of the AI-driven bot, much less its purported performance capabilities as claimed by YieldTrust.ai.

Montana’s regulator stated in its cease and desist order that YieldBot was developed for Binance’s BNB Smart Chain and could interface with staking programs to generate returns for new investors of up to 2.2% per day through:

“[Analyzing] the crypto markets and – in milliseconds – make its own trading decisions, autonomously choosing from hundreds of trading methods and chaining them together to create unique strategies – achieving an exhilarating performance.”

The Montana Order demands YieldTrust.ai cease and desist all Montana activity and seeks a total of $100,000 in fines.

The Texas State Securities Board issued multiple cease and desist orders on YieldTrust.ai .

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