SEC Settles With Rimar Over False AI Trading Claims

According to Odaily, the U.S. Securities and Exchange Commission (SEC) has reached a settlement with trading company Rimar over allegations of providing false information to investors about using artificial intelligence (AI) for automated trading of cryptocurrencies and other assets. The SEC stated that Rimar LLC and Rimar USA's owner and CEO, Itai Liptz, 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 claims of employing emerging technology were merely a tactic to deceive investors, which the agency referred to as 'AI-washing.' Rimar USA agreed to settle the charges and will pay a total of $310,000 in civil penalties without admitting or denying the findings of the regulatory investigation.