YieldTrust: The AI Transaction Robot That Turned Out To Be A Ponzi Scheme

04/05/2023 12:19 • Digital Disruptors • 80 views

On April 5, it was reported that the regulatory authorities of Alabama, Montana and Texas in the United States had issued a statement prohibiting the AI transaction robot YieldTrust and its developer Stefan Ciopraga, calling it a Ponzi scheme and unregistered securities issuance.

Regulatory agencies in three states in the United States have issued a ban on the AI trading robot YieldTrust

With the continuous evolution of technology, it is not surprising to see new and innovative ways to invest and make money. However, in recent times, there has been a dramatic increase in fraudulent schemes posing as legitimate investment opportunities. On April 5, 2021, three regulatory authorities in the United States – Alabama, Montana and Texas – issued a statement calling out AI transaction robot YieldTrust as a Ponzi scheme and unregistered securities issuance. YieldTrust and its developer Stefan Ciopraga had been allegedly scamming people for quite some time – let’s delve into the details.

What is YieldTrust?

YieldTrust was marketed as an “AI transaction robot” that used advanced technology to generate profits for users. It promised returns of up to 15% per month through arbitrage trading, strategies that exploit market inefficiencies to make low-risk profits. YieldTrust also claimed to have a diverse portfolio of investments that spread risk across different industries and countries.

How YieldTrust Worked

Investors would deposit their money into a YieldTrust account and allow the robot to do the trading. YieldTrust supposedly used artificial intelligence to make trades on different platforms, analyze market trends, and generate profits for the investor. The investor could then withdraw these profits or reinvest them in the system.

The Red Flags

Despite the high rates of return and the supposed advanced technology behind YieldTrust, many investors noticed some red flags. For starters, the website had no information about the team behind YieldTrust, apart from Stefan Ciopraga’s name. There was no information about the company’s registration or licensing, either. Moreover, YieldTrust promised returns that seemed too good to be true, and there was no transparency about how the returns were being made.

The Scam Unveiled

YieldTrust had been operating for quite some time before the scam was unveiled. They were able to lure in investors by word of mouth, social media adverts, and even enlistment of affiliates who were rewarded for bringing in new investors. It was only after numerous complaints from investors who could not withdraw their investments that regulatory authorities took notice.

The Aftermath

After an investigation, regulatory authorities in Alabama, Montana, and Texas issued a warning about YieldTrust and its developer, Stefan Ciopraga. They called it a Ponzi scheme and unregistered securities issuance. Investors were advised to withdraw their funds and cease all transactions with YieldTrust. Stefan Ciopraga was also asked to stop all operations in the states mentioned.

Conclusion

As the financial world continues to experience new technological trends, scammers will also adapt their tactics. Investors need to be cautious and conduct due diligence before investing their funds. YieldTrust may have fooled many people, but the authorities eventually caught on. Let this be a lesson never to be too lured by prospects of quick money and always verify the legitimacy of anything that looks too good to be true.

FAQs

Q1. Was YieldTrust available in other states outside Alabama, Montana, and Texas?
A: Yes, YieldTrust was available globally, with investors from different nations.
Q2. How much funds were invested in YieldTrust?
A: No definitive number was provided, but it is estimated that the scheme was worth millions of dollars.
Q3. Will investors get their funds back?
A: It is unknown at the moment, but investors are advised to withdraw their funds and cease transactions with YieldTrust.

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