Crypto scammer pleads guilty to AI trading bot scam

As a researcher with a background in both finance and artificial intelligence, I’ve seen my fair share of innovative ideas and technologies disrupt traditional markets. However, the recent case of Kolin Lukas Deshazo serves as a stark reminder that not all innovation is created equal, and some individuals will stop at nothing to capitalize on unsuspecting investors’ dreams.


A cryptocurrency scammer has pleaded guilty to defrauding multiple individuals by promising lucrative gains via an artificial intelligence-powered trading bot.

5news reports that Kolin Lukas Deshazo, a resident from Springdale, California, allegedly masterminded an elaborate cryptocurrency swindle using artificial intelligence. He attracted potential investors by touting a supposedly intelligent trading bot capable of generating substantial profits on their behalf.

According to his plea deal, it was revealed that Deshazo deceived his victims by falsely claiming to have a trading bot. In reality, however, it’s alleged that he didn’t possess one at all. Instead, the money gathered through his scheme was reportedly used for gambling activities.

As a seasoned crypto investor, I’ve come to realize that automated trading bots aren’t exactly fresh news. They’ve been part of the financial landscape much longer than the world of cryptocurrencies, serving as software solutions that carry out trades on various exchanges according to predetermined strategies and algorithms within traditional markets.

Examining market statistics like price fluctuations, trading volume, and past trends, automated trading bots can swiftly capitalize on market openings by executing trades more rapidly and effectively than a human trader might. The integration of artificial intelligence has made these bots increasingly flexible and intelligent, using machine learning to fine-tune their strategies and react promptly to real-time market developments.

Because the behavior of the financial market can be intricate, cryptocurrency trading is often associated with experienced traders. Consequently, AI trading bots have become increasingly sought after among individual investors due to their convenience. Deshazo seized the opportunity to make crypto trading success more accessible by introducing an automated solution that was previously unavailable.

A video labeled “Kolin Lukas Gambling with STOLEN BITCOIN Funds,” uploaded presumably by someone defrauded, depicts Deshazo participating in the World Poker Tournament in August 2021. Earlier investigations by the Springdale Police Department had taken place in a December 2019 investigation.

According to the report, one of the victims revealed to the FBI that Deshazo managed a crypto investment group on the widely-used messaging platform Telegram. In this group, the victim sent approximately $9000 worth of cryptocurrencies to a wallet owned by Deshazo, who guaranteed the money would increase fourfold within a year.

Consequently, federal probes found no evidence that a trading bot was associated with the wallet into which the victim moved their funds.

In the realm of cryptocurrencies, there’s nothing new about deceitful schemes, and their prevalence has increased with the advent of artificial intelligence. For instance, earlier this year, the Commodity Futures Trading Commission cautioned against an upsurge in bogus trading bots marketed as “Money Machines.” These bots are a cause for concern, as the regulatory body also pointed out that promises of high returns should serve as warning signs of potential fraud.

In a previous interview with Crypto.news, Lawrence Moroney, who used to head AI at Google, advised readers that while AI-driven trading bots have some potential, their capabilities should be viewed with caution. He pointed out that AI may help analyze data effectively but lacks the ability to consistently foresee market fluctuations. Overreliance on these bots could potentially disrupt market norms, leading to incorrect results and even the possibility of market manipulation.

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2024-08-14 12:45