The Securities and Futures Commission (SFC) of Hong Kong today warned the public of suspected virtual asset-related fraud involving an entity operating under the name of “Quantum AI”.

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 SFC also suspects that Quantum AI may have used a “news” website to disseminate false and misleading information about itself and promote its cryptocurrency trading services to the Hong Kong public. It claims on the aforesaid website that the Hong Kong public has been using its technology to trade in cryptocurrencies and is able to earn “too-good-to-be-true” returns.

At the SFC’s request, the Hong Kong Police Force has taken steps to block access to the website of Quantum AI and take down relevant social media pages. Notwithstanding the action taken, the public should beware that scammers may continue to create websites and social media pages with similar domain names.

The SFC also added the aforesaid websites on the SFC’s Suspicious Virtual Asset Trading Platforms Alert List on 8 May 2024.

Online investment scams may involve any type of assets and are perpetrated through multiple channels, investors may suffer substantial losses. The SFC once again warns the public to be cautious about “too-good-to-be-true” investment opportunities and advice posted on social media platforms. Investors should stay vigilant and beware of fraud when making investment decisions.