30s Summary

Rimar Capital has been penalised by the US Securities and Exchange Commission (SEC) for falsely claiming artificial intelligence (AI) capabilities to attract investors. The company, including CEO Itai Liptz and board member Clifford Boro, raised nearly $4m and were fined $310k. They falsely boasted about an AI trading platform for crypto and stocks, manipulated how much money the company managed and falsely claimed large growth since 2015. It was found Liptz used investor funds for personal expenses. Both Liptz and the company accepted the penalty without admitting wrong.

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A trading company got in trouble with the U.S. Securities and Exchange Commission (SEC) for allegedly lying about their artificial intelligence (AI) capabilities. They made claims about their AI technology to attract investors and ended up raising nearly $4 million. The company in question, Rimar Capital along with its American branch, the CEO Itai Liptz, and board member Clifford Boro had to pay a fine of $310,000 to settle things. However, they didn’t own up to or deny any wrongdoing.

SEC official Andrew Dean said the company used fancy AI terminology to describe their supposed AI-based platform for trading stuff like cryptocurrencies, company shares and future contracts. Dean said they’re keeping a close eye on people who hype up their tech abilities to lure in investors.

To get people to invest, Liptz and Boro kept boasting about a non-existent AI platform for crypto and stock trading through online posts, emails and presentations. They also lied about how much money their company managed, saying it was between $16 million and $20 million when it was really less than $2 million. They even fibbed about their performance, claiming a massive yearly growth rate since 2015.

The SEC also said that Liptz used some of the money for personal expenses while the investors were told it was for marketing and developing an app. After all the drama, the company and the key players accepted the SEC’s findings and penalty, but didn’t admit to any wrongdoing. Liptz will have to pay $213,600 along with a $250,000 penalty and won’t be allowed to work in the industry for five years. And the company got a serious warning from SEC.

Source: Cointelegraph