Hong Kong Targets Fake Crypto Exchange Linked to Elon Musk

The Hong Kong Securities and Futures Commission (SFC) has issued a caution concerning Quantum AI, which is accused of being involved in fraudulent activities related to virtual assets. 

The SFC claims that Quantum AI allegedly applied deepfake technology to make pictures and videos, suggesting that Elon Musk was involved with their cryptocurrency trading services. The fraud was part of their tactic to attract investors who would think that their platform had been approved by the popular businessman. 

 Detailed Information on the Fraudulent Activities

As per a local report, Quantum AI claimed that their technology is popular among the people of Hong Kong to secure immense returns on cryptocurrency trades. This claim, along with the manipulated media involving Elon Musk, led to suspicions of misinformation intended to mislead potential investors.

In response to these findings, the Hong Kong Police Force has taken steps to block access to the Quantum AI website and eliminate its social media presence. Those actions were initiated to stop the dissemination of false information and, thus, protect investors from possible fraud. 

“It claims on the “news” website that the Hong Kong public has been using its technology to trade in cryptocurrencies and is able to earn “too-good-to-be-true” returns.” Hong Kong’s SFC

Moreover, the SFC is on the lookout and has raised worries that those behind Quantum AI may attempt to run off with this scam and set up new web pages and social media accounts. Consequently, they recommend that investors be careful and conduct proper due diligence before dealing with any services that pertain to virtual assets. 

SFC’s Wider Campaign Against Crypto-Related Frauds

To deal with the Quantum AI problems, the SFC has recently provided warning notices about the doubtful positioning of some other crypto exchanges and services— including MEXC, which reportedly offered free cryptocurrency-related advice through social media and messaging groups and lured people into buying digital currencies. Similar to the actions taken against Quantum AI, access to MEXC’s websites has been restricted.

The SFC has also warned the public of the dangers of interacting with unlicensed virtual asset trading platforms such as BitForex and Bybit. The platforms have been red-flagged for supplying non-registered financial products that could threaten investors with significant risks. In this regard, the SFC has acted to cut off the web links and social media pages of these platforms to prevent the public from falling victims to fraud and financial loss.