Hong Kong Takes Action Against Fake Crypto Exchange Linked to Elon Musk
The Hong Kong Securities and Futures Commission (SFC) has issued a warning to the public about Quantum AI, a company accused of engaging in fraudulent activities and impersonating Elon Musk. Quantum AI claims to use artificial intelligence technology to offer cryptocurrency trading services.
However, the SFC suspects that Quantum AI deceived the public by posing as Elon Musk, the well-known entrepreneur and developer of the company’s alleged technologies.
According to reports, Quantum AI used deepfake videos and photos on its website and social media platforms to create the illusion of Elon Musk’s association with the platform. This deceptive tactic led investors to believe that Quantum AI had Elon Musk’s endorsement or involvement.
Furthermore, on May 8, the SFC raised suspicions against Quantum AI for spreading “false and misleading information” about the company through an undisclosed news website. The aim of this strategy was supposedly to promote its crypto trading services and gain credibility among unsuspecting investors in Hong Kong.
In response to these allegations, the Hong Kong Police Force has taken action to block Quantum AI’s website and remove associated social media pages at the request of the SFC. However, authorities remain vigilant, warning the public about potential ongoing fraudulent activities.
There is concern that fraudsters may try to evade regulatory actions by creating new websites and social media pages with similar domain names, continuing the deception and posing risks to unsuspecting investors.
As a result, investors are advised to be cautious and conduct thorough due diligence before engaging with any virtual asset-related services.
The SFC has recently issued warnings about other alleged fraudulent activities in the crypto space. It cautioned the public about a fake crypto exchange called MEXC, which lured victims through social media and messaging groups, offering free investment advice and prompting them to buy crypto on its websites.
The SFC has also warned about suspicious websites impersonating licensed virtual asset trading platforms, such as HSKEX and OSL Digital Securities Limited. These fraudulent websites could deceive investors into believing they are interacting with legitimate entities.
Additionally, the SFC has issued notices regarding BitForex, a cryptocurrency exchange involved in fraudulent activities, and Bybit, a cryptocurrency exchange offering suspicious investments. The SFC has taken measures to block access to these platforms to protect investors from potential harm.
Hong Kong SFC is committed to ensuring investor security and urges the public to remain cautious in the face of fraudulent activities in the crypto industry.