Hong Kong SFC Issues Warning Against Suspicious Crypto Trading Platform Quantum AI

The Securities and Futures Commission (SFC) of Hong Kong issued an announcement warning the public of a purported virtual asset trading platform (VATP) operating under the name of "Quantum AI" for suspected virtual asset-related fraudulent activities.

"Quantum AI claims to provide cryptocurrency trading services with its underlying artificial intelligence (AI) technology. The SFC suspects that Quantum AI uses AI-generated deepfake videos and photos of Mr Elon Musk on its website and through social media to deceive the public that Mr Musk is the developer of Quantum AI's underlying technology," the announcement stated.

The Hong Kong regulator is also investigating Quantum AI for potentially using a "news" website to spread inaccurate and deceptive details about their cryptocurrency trading services to the people of Hong Kong. On this website, Quantum AI falsely asserts that the Hong Kong public has been utilizing its technology to engage in cryptocurrency trading and achieve "too-good-to-be-true" profits.

In response to the SFC's request, the Hong Kong Police Force has proceeded to block access to Quantum AI's website and remove related social media pages. However, it is important for the public to remain cautious, as scammers might still attempt to establish websites and social media pages using similar domain names.

The SFC has also added the aforementioned websites to its Suspicious Virtual Asset Trading Platforms Alert List as of May 8, 2024.

Investors need to be aware that online investment scams can target various types of assets and exploit multiple channels, putting them at a significant risk of financial loss. The SFC reiterates its warning to the public about investment opportunities and advice shared on social media platforms, often promising unrealistically high profits. Investors should stay alert and exercise caution to avoid becoming victims of fraudulent schemes when making investment decisions.

Quantum AI is the latest addition to the SFC's warning list of VATPs, following CBEX Group, Bitget Pro​, TCAME, BitCloud, and Sure X​, which were added last month.