Crypto Exchange Uses Elon Musk Deepfake Videos for Fraud Scheme

Quantum AI, a fraudulent crypto exchange platform, utilized AI deepfake videos of Elon Musk to promote crypto trading services and mislead the public.

Elon Musk, CEO of Tesla and proponent of Dogecoin, allegedly endorsed an illegitimate cryptocurrency exchange that Hong Kong authorities apprehended. 

Concerning Quantum AI, an organization purporting to provide cryptocurrency trading services utilizing artificial intelligence (AI), the Hong Kong Securities and Futures Commission (HKSFC) has issued a warning. 

Quantum AI, headquartered in Hong Kong, asserted an explicit association with Musk on its defunct website. Musk allegedly created the AI technology that forms the foundation of cryptocurrency transactions.

In addition, videos and images of Elon Musk generated by artificial intelligence were discovered on the organization’s website and social media accounts. 

Through an undisclosed news website, Hong Kong SFC suspected Quantum AI of disseminating “false and misleading information about itself.” The motivation was to promote its cryptocurrency trading services and establish legitimacy among Hong Kong’s unwary cryptocurrency investors. The alert from Hong Kong SFC stated: 

“It claims on its “news” website that the Hong Kong public has been trading cryptocurrencies using its technology and earning returns that are “too excellent to be true.”

The HKSFC reportedly instructed the Hong Kong police to block the website of Quantum AI and remove all associated social media profiles, according to local news outlet Jinse. 

Twenty-three cryptocurrency exchanges have submitted license registration applications in Hong Kong. In February, the HKSFC ceased accepting applications for crypto licenses and ordered all unlicensed entities to cease operations by the end of May. 

The Hong Kong Monetary Authority (HKMA) and the Central Bank of Hong Kong announced a partnership to investigate asset tokenization with local private sector firms, such as HSBC and HashKey, amid the ongoing crackdown on unlicensed cryptocurrency exchanges. 

On May 7, HKMA declared the establishment of a “Project Ensemble Architecture Community,” an exclusive group consisting of regulators and industry representatives whose mission is to establish tokenization standards. 

Another objective of the initiative is to facilitate and encourage interoperability among wholesale central bank digital currencies (wCBDCs), a form of digital currency that financial institutions and banks utilize.