The Hong Kong Securities and Futures Commission (HKSFC) has issued a public warning regarding a fraudulent crypto exchange platform utilizing AI-generated videos of Elon Musk to promote its services.
On May 8, the HKSFC cautioned the public about Quantum AI, a Hong Kong-based platform falsely claiming a direct association with SpaceX founder Elon Musk. Quantum AI advertised Musk as the lead developer behind their product, employing deepfake videos and images of him on their websites and social media channels.
Additionally, the fraudulent platform was accused of disseminating “false and misleading information about itself” through a news outlet to gain credibility among the public. The HKSFC highlighted the platform’s claims on the “news” website, suggesting that the Hong Kong public had been using its technology to trade cryptocurrencies and earn unusually high returns.
Local reports indicate that the Hong Kong police have been instructed to take action against Quantum AI. As part of this crackdown, all of Quantum AI’s website and related social media pages will be removed.
Over the past year, AI-generated videos have increasingly become a tool in the arsenal of crypto scammers. Elon Musk, known for his advocacy for cryptocurrencies, particularly Dogecoin, has been a popular target for such fraudulent schemes. Instances abound where scammers have exploited Musk’s identity to promote crypto scams across various social platforms.
Most recently, during the solar eclipse event on April 8, YouTube witnessed a surge in live streams featuring old SpaceX videos and deepfakes of Elon Musk, aiming to deceive users into sending crypto to scammers in hopes of doubling their investment.
These deceitful tactics extend beyond Musk, with fraudsters leveraging the identities of various well-known figures within and outside the crypto sector. Ethereum co-founder Vitalik Buterin was similarly targeted earlier this year.
Against the backdrop of the HKSFC’s warning, Hong Kong has been advocating for a licensing regime to regulate cryptocurrency service providers. The commission has received applications from 23 exchanges and has directed all other businesses to cease operations in the region by the end of May 2024.
