See More

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

1 min
Updated by Ali Martinez
Join our Trading Community on Telegram

In Brief

  • Crypto project Humanized AI switched off all its social media accounts after stealing $665,000 and distributing it to DeFi platforms.
  • The project incentivized users with HMZ tokens in exchange for contributing to the project's unique information-processing efforts.
  • After transferring crypto to decentralized exchanges, the funds appear to have been moved to a single address on the eXch exchange.
  • promo

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.

Read more: Top 9 Artificial Intelligence (AI) Cryptocurrencies in 2024

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.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

David-Thomas.jpg
David Thomas
David Thomas graduated from the University of Kwa-Zulu Natal in Durban, South Africa, with an Honors degree in electronic engineering. He worked as an engineer for eight years, developing software for industrial processes at South African automation specialist Autotronix (Pty) Ltd., mining control systems for AngloGold Ashanti, and consumer products at Inhep Digital Security, a domestic security company wholly owned by Swedish conglomerate Assa Abloy. He has experience writing software in C,...
READ FULL BIO
Sponsored
Sponsored