Artificial Intelligence & Robotics
Crypto founder who allegedly staged his death is at center of class action lawsuit
The founders of a cryptocurrency project called Zerebro have been accused of promoting fake artificial intelligence, manipulating token markets, and staging one of their deaths to draw attention away from mounting questions over insider trading. (Image from Shutterstock)
The founders of a cryptocurrency project called Zerebro have been accused of promoting fake artificial intelligence, manipulating token markets, and staging one of their deaths to draw attention away from mounting questions over insider trading.
According to a proposed class action lawsuit, which was brought by Canadian investor Jonathan Beckwith and filed in federal court in New York on Monday, Jeffry Yu and Agustin “Tint” Cortes marketed Zerebro as a venture-grade AI infrastructure project that was supported by proprietary AI models and a token, $ZEREBRO, which was described as its economic engine, Law.com reports.
The suit alleges that while purchasers were told that the token’s value would appreciate with the expanded adoption of the AI technology, Yu and Cortes secretly controlled the token supply and operated an undisclosed market-making operation, Law.com reports. The suit also alleges that as public scrutiny grew over the absence of the purported technology, the price of $ZEREBRO collapsed, and defendants exited with millions of dollars.
Yu, amid the collapse, publicly staged what appeared to be a suicide and arranged for the release of an obituary, according to Law.com, citing the suit. He later appeared alive and continued to launch other cryptocurrency projects, according to the story.
“This case is not about a failed startup or ambitious founder,” the complaint said, according to Law.com. “It is about misrepresentations, concealed market manipulation, and the deliberate exploitation of public trust in emerging technology.”
The suit, which seeks damages on behalf of the proposed class of token purchasers, asserts claims including fraud, false advertising and deceptive business practices.
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