GenesisAI Corp. and Archil Cheishvili
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26619 / Aug. 26, 2026
Securities and Exchange Commission v. GenesisAI Corp. and Archil Cheishvili, No. 1:26-cv-25837-RKA (S.D. Fla. filed Aug. 26, 2026)
SEC Files Settled Action Against Start-Up Artificial Intelligence Company and former CEO
On August 26, 2026, the Securities and Exchange Commission filed settled charges against GenesisAI Corp., an artificial intelligence start-up company formerly based in Miami, Florida, and Archil Cheishvili, its founder and former CEO, in connection with alleged misrepresentations concerning the company’s projected revenue, current valuation, and existing customer demand.
According to the SEC’s complaint, filed in U.S. District Court for the Southern District of Florida, from December 2019 through December 2024, the Defendants raised more than $5.3 million from more than 4,000 investors in a series of Regulation Crowdfunding and Regulation A offerings promoting GenesisAI’s marketplace for AI products, while negligently misrepresenting the company’s financial prospects and the viability of its purported marketplace for AI models. As further alleged, the Defendants solicited investments using projections of substantial revenue in 2020 that rose as high as $250 million by 2024, current valuations that steadily increased until reaching more than $200 million in 2022, and claims that GenesisAI had as many as 25 “partnerships” and a waitlist of potential customers. As alleged, however, Defendants should have known – but failed to disclose – the that the company’s revenue projections lacked any reasonable basis because, among other things, the GenesisAI’s marketplace remained in a testing phase until 2022 and was never commercially viable, the company’s valuations were based on Cheishvili’s subjective estimations, the purported “partnerships” were not enforceable, and no actual customer waitlist existed.
Without admitting the allegations in the complaint, the Defendants have consented to the entry of final judgments, subject to court approval, which would permanently enjoin them from violating Section 17(a)(2) of the Securities Act of 1933, and order Cheishvili to pay disgorgement of $50,000 plus prejudgment interest of $9,184.53, and a civil penalty of $50,000.
The SEC’s investigation was conducted by Eric E. Morales and Fernando Torres, with assistance from Russell Koonin, and supervised by Thierry Olivier Desmet and Stephanie N. Moot of the SEC’s Miami Regional Office. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.