The Hong Kong Securities and Futures Commission (SFC) has issued a warning regarding Quantum AI, which is allegedly engaged in deceptive practices linked to virtual assets.

According to the SFC, Quantum AI is accused of using deepfake technology to manipulate images and videos, implying a connection between Elon Musk and their cryptocurrency trading services.

Hong Kong Targets Fake Crypto Exchange Deepfaking Elon Musk

The fraud was a deliberate strategy to lure in investors who would believe that their platform had received endorsement from a well-known entrepreneur.

According to a report from a local source, Quantum AI has stated that their technology is highly favored by the residents of Hong Kong for generating significant profits from cryptocurrency trading.

This statement, combined with the altered media surrounding Elon Musk, raised concerns about the dissemination of false information with the aim of deceiving potential investors.

The Hong Kong Police Force has responded to these findings by taking decisive action. They have implemented measures to restrict access to the Quantum AI website and completely remove its presence from social media.

The measures were taken to prevent the spread of inaccurate information and safeguard investors against potential fraudulent activities.

In addition, the SFC is actively monitoring the situation and expressing concerns that the individuals responsible for Quantum AI may try to escape with the scam's proceeds and establish new online platforms and social media profiles.

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Authorities Warn Against Quantum AI

It is advised that investors exercise caution and thoroughly research any services related to virtual assets before engaging with them.

In response to the Quantum AI problems, the SFC has issued warning notices regarding the questionable practices of certain crypto exchanges and services.

One such exchange, MEXC, allegedly enticed individuals to purchase digital currencies by offering free cryptocurrency advice on social media and messaging platforms. Just like Quantum AI, MEXC's websites have also faced access restrictions.

The public has been warned by the SFC about the potential risks associated with engaging with unlicensed virtual asset trading platforms like BitForex and Bybit. The platforms have raised concerns due to their provision of unregistered financial products, which may pose significant risks to investors.

The SFC has taken action to disable the web links and social media pages of these platforms in order to protect the public from potential fraud and financial harm, Business Insider reported.

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