New Jersey Orders Crypto Sellers to Stop Making Allegedly Misleading Marketing Claims Invoking AI & Tech Personalities

  • New Jersey AG Matthew Platkin announced a Cease and Desist Order issued to The Shark of Wall Street and, and an affiliated individual, ordering the companies to stop misleadingly marketing unregistered cryptocurrencies and nonfungible tokens (NFTs) in violation of the state’s securities law and regulations.
  • The order alleges that the companies falsely marketed “TruthGPT Coin,” as powered by an artificial intelligence (AI) model developed by a high-profile tech industry personality; falsely represented that the TruthGPT Coin and the companies’ other digital assets are endorsed by various leaders in the cryptocurrency space; and misrepresented potential earnings to investors.
  • Under the order, the companies must cease selling unregistered securities and making misrepresentations in connection with selling securities.
  • To listen to Chris Allen and Emily Yu discussing this news story in more detail on our podcast, State AG Pulse, click here.