Hong Kong Takes Action Against Fake Crypto Exchange Allegedly Connected to Elon Musk
The Hong Kong Securities and Futures Commission (SFC) has issued a warning to the public about Quantum AI, an organization that is allegedly involved in fraudulent activities related to virtual assets and is impersonating Elon Musk. Quantum AI claims to use artificial intelligence technology to offer cryptocurrency trading services.
However, the SFC in Hong Kong has raised suspicions that Quantum AI deceived the public by pretending to be Elon Musk, the well-known entrepreneur and developer of Quantum AI’s supposed technologies.
According to the report, Quantum AI used deepfake videos and photos on its website and social media platforms to create the impression that Elon Musk was affiliated with the platform. This deceptive tactic led investors to believe that Quantum AI had Elon Musk’s endorsement or involvement.
In addition, on May 8, the SFC in Hong Kong raised suspicions against Quantum AI for allegedly spreading “false and misleading information” about the company through an undisclosed news website. This strategy was supposedly aimed at promoting its crypto trading services and gaining 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. Despite these enforcement measures, authorities remain vigilant and warn the public about potential ongoing fraudulent activities.
There is a 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.
Therefore, investors are advised to be cautious and conduct thorough due diligence before engaging with any virtual asset-related services.
The SFC in Hong Kong has recently heightened investor protection by warning the public about an alleged fraudulent crypto exchange called MEXC. The fake MEXC reportedly lured victims through social media and messaging groups, offering free investment advice and encouraging them to buy crypto on its websites.
The SFC has added the fake MEXC and its websites to its alert list, suspecting illegal virtual asset trading activities. Hong Kong police have restricted access to MEXC websites and are working with the SFC to investigate further instances of fraudulent behavior. The SFC has also warned about suspicious websites impersonating licensed virtual asset trading platforms.
Specifically, the commission has identified two platforms, HSKEX and OSL Digital Securities Limited, that are being impersonated by fraudulent websites, potentially deceiving investors into believing they are interacting with legitimate entities.
On March 4, the SFC issued a public notice regarding BitForex, a cryptocurrency exchange allegedly involved in fraudulent activities. The SFC’s notice highlights suspected virtual asset fraud involving BitForex, emphasizing that the exchange is not licensed by the SFC and has not applied for a license to operate a virtual asset trading platform in Hong Kong. Investors are urged to exercise caution when dealing with unlicensed entities. In response to these concerns, the SFC has blocked access to BitForex’s web links and social media pages to protect investors.
On March 14, the SFC also issued a cautionary statement advising crypto traders against using the cryptocurrency exchange Bybit and identifying 11 of its products as suspicious investments. The SFC has flagged leveraged tokens, options, futures contracts, and similar crypto services offered by Bybit, highlighting the potential financial risks and losses for investors associated with these unauthorized products.
