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AI Crypto Project Pulls Exit Scam, Stealing $665,000

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AI Crypto Project Pulls Exit Scam, Stealing $665,000

  beincrypto.com 07 March 2024 15:13, UTC

AI Crypto Project Pulls Exit Scam, Stealing $665,000

Humanized AI (HMZ), a crypto project that promised to revolutionize how artificial intelligence (AI) understands human perception, has disappeared off the digital map, leaving scam victims out of pocket.

The project, gathering funds over one month, raised 173 ETH, equivalent to $665,000, before its sudden disappearance.

AI Crypto Scam Project Vanished

Ostensibly designed to bridge the technological gap between AI’s computational abilities and the nuances of human input, Cyvers, a Web3 security platform, has flagged Humanized AI as a fraudulent scheme. This comes after the project’s website and social media accounts went dark, raising alarms about the legitimacy of its operations.

Humanized AI had previously introduced a novel “quantify-to-earn” system. It enticed users with HMZ AI crypto tokens in exchange for their contributions to the project’s data processing efforts. This approach aimed to enhance user engagement and participation by paying awards with the project’s native token.

However, following a successful fundraising campaign, the team quickly transferred the collected funds to an automated crypto exchange. They then turned off the project’s digital presence. Cyvers meticulously documented the transfer of the raised funds, distributing the HMZ tokens on decentralized finance (DeFi) platforms before moving them to a specific address.

“They have collected approximately 173 ETH, $665,000, during a one-month sale. The HMZ token was sold on defi platforms and transferred… Furthermore, the 665,000 USD has been deposited to the eXch exchange,” Cyvers confirmed.

The sudden vanishing act of Humanized AI raises significant concerns within the crypto community, highlighting the precarious nature of investing. The case is a cautionary tale, reminding investors of the importance of thorough due diligence before committing funds to seemingly innovative but unproven ventures.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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