Hong Kong authorities expose crypto scam featuring deepfake Elon Musk

The Hong Kong Securities and Futures Commission (HKSFC) has warned the public about a fake crypto exchange platform that is using AI-generated videos of Elon Musk to promote its crypto trading services.

On May 8, the HKSFC issued an alert claiming that Hong Kong-based Quantum AI was directly linked to the SpaceX founder.

The exchange promoted Musk as the lead developer behind its products and used deepfake videos and images of him on their website and social media accounts.

The fake platform was also accused of spreading “false and misleading information about itself” through a news channel in order to gain public trust.

“The news” website claims that Hong Kong residents are using its technology to trade cryptocurrencies and are able to achieve “too good to be true” returns.” HKSFC wrote.

Local reports suggest that Hong Kong police were directed to take down the platform. As part of this move, Quantum AI’s entire website and associated social media pages will be closed.

Over the past year, AI-generated videos have become a powerful weapon in the arsenal of crypto scammers.

Musk has always been a favorite of these bad actors as he has defended cryptocurrencies in the past, especially Dogecoin. There have been numerous incidents where the Tesla CEO’s identity has been used to promote crypto scams across multiple social platforms.

Most recently, during the solar eclipse event on April 8, YouTube was flooded with livestreams that used old videos from SpaceX and deepfakes from Elon Musk to entice users to send crypto to scammers in hopes of doubling up.

These deceptive tactics are not limited to Musk; because these scammers have used the identities of many popular names both inside and outside the crypto industry to deceive crypto users. Ethereum co-founder Vitalik Buterin was one such victim earlier this year.

Against the backdrop of the commission’s warning, Hong Kong is also pushing for a licensing regime to regulate cryptocurrency service providers. HKSFC received applications from 23 exchanges and required all other businesses to cease operations in the region by the end of May 2024.