The Hong Kong Securities and Futures Commission (HKSFC) recently issued a warning regarding a fraudulent crypto exchange platform utilizing AI-generated videos of Elon Musk to promote its services. Quantum AI, based in Hong Kong, falsely claimed to have a direct connection with the SpaceX founder and marketed Musk as the lead developer behind their product. This platform used deepfake videos and images of Musk on its websites and social media accounts to deceive the public.

The HKSFC highlighted that Quantum AI spread false and misleading information about itself through a news outlet to gain credibility. The platform made exaggerated claims about the Hong Kong public using its technology to trade cryptocurrencies and earn unrealistic returns. In response, the Hong Kong police have been instructed to crack down on Quantum AI, leading to the removal of its website and related social media pages.

AI-generated videos have increasingly been used by scammers in the cryptocurrency space, with Elon Musk being a popular target due to his previous support for cryptocurrencies like Dogecoin. Scammers have exploited Musk’s identity to promote fraudulent schemes on various social platforms. For instance, during the recent solar eclipse event, YouTube was inundated with live streams featuring deepfake videos of Musk to trick users into sending crypto to scammers.

These deceptive tactics extend beyond Musk, with fraudsters also impersonating other well-known figures in the crypto industry to deceive users. The commission’s warning coincides with Hong Kong’s efforts to establish a licensing regime for regulating cryptocurrency service providers. The HKSFC has already received applications from 23 exchanges and mandated that all other businesses operating in the area cease their operations by the end of May 2024.

In a related development, India’s Enforcement Directorate (ED) has taken action against 299 entities involved in a cryptocurrency scam, demonstrating the global crackdown on fraudulent activities in the crypto space. Stay informed about the latest news and updates on cryptocurrency scams by visiting Global Crypto News.

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