HK Authorities Reveal Elon Musk Crypto Scam

Beware of crypto scams! The HKSFC alerts the public about a fraudulent platform using AI-generated videos of Elon Musk to promote crypto trading services.

May 11, 2024 - 13:12
May 10, 2024 - 14:21
HK Authorities Reveal Elon Musk Crypto Scam
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The Hong Kong Securities and Futures Commission (HKSFC) has alerted the public regarding a fraudulent crypto exchange platform utilizing AI-generated videos of Elon Musk to promote crypto trading services.

On May 8, the HKSFC cautioned that Quantum AI, based in Hong Kong, falsely claimed a direct association with SpaceX's founder. The platform touted Musk as the lead developer and used deepfake videos and images of him across their online platforms. Moreover, the deceptive platform was accused of disseminating "false and misleading information about itself" through a news outlet to build credibility among users.

"It claims on the “news” 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." stated the HKSFC.

Reports indicate that Hong Kong authorities have been instructed to take action against the platform, leading to the removal of Quantum AI's website and associated social media pages. In recent times, AI-generated videos have become a favored tool among crypto scammers. Elon Musk's endorsement has made him a prime target, given his previous support for cryptocurrencies like Dogecoin. Instances abound where scammers have exploited Musk's identity to promote crypto scams on various platforms.

Most notably, during the April 8 solar eclipse event, YouTube witnessed a surge in live streams featuring old SpaceX footage and deepfake Elon Musk videos, enticing users to send crypto in hopes of doubling their investments.

These fraudulent tactics extend beyond Musk, scammers have impersonated various prominent figures within and outside the crypto sphere. Ethereum co-founder Vitalik Buterin fell victim to such impersonation earlier this year.

Concurrent with the commission's alert, Hong Kong is actively pursuing a licensing framework to regulate cryptocurrency service providers. The HKSFC has received applications from 23 exchanges and mandated others to cease operations in the region by May 2024.