Hong Kong authorities expose crypto scam featuring deepfake Elon Musk

AI-Powered Scam In Hong Kong

The Hong Kong Securities and Futures Commission (HKSFC) has issued a warning about a fraudulent crypto exchange platform in Hong Kong that utilizes AI-generated videos of Elon Musk to promote its crypto trading services. The platform, Quantum AI, falsely claimed to have a direct connection with the SpaceX founder and even portrayed Musk as the lead developer behind their product using deepfake videos and images.

Crackdown on Deceptive Tactics

Local reports suggest that the Hong Kong police have been instructed to take action against Quantum AI, leading to the planned shutdown of all its website and social media pages. This move comes in light of the platform’s spreading of false and misleading information about itself to gain trust among users, ultimately aiming to lure them into fraudulent activities.

Regulating Cryptocurrency Services in Hong Kong

Notably, the HKSFC has been advocating for a licensing regime to oversee and regulate cryptocurrency service providers in Hong Kong. With 23 exchanges already applying for licenses, the commission has set a deadline for all other businesses to cease operations in the region by the end of May 2024 to combat fraudulent activities and ensure the security of crypto users.

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