Asia Tech Wire (May 9) -- Hong Kong securities regulator flagged Quantum AI for suspected virtual asset-related fraud.

The Securities & Futures Commission (SFC) of Hong Kong issued a statement on Wednesday, cautioning the public against an entity operating under the name "QuantumAI" that it suspects of engaging in fraudulent activities related to virtual assets.

QuantumAI claims to provide cryptocurrency trading services using its underlying artificial intelligence technology.

However, the SFC suspects that QuantumAI used AI-generated, deep-fake videos and photos of Tesla CEO Elon Musk on its website, and through social media to deceive the public into believing that Musk was the developer of QuantumAI's underlying technology.

The SFC also suspects that QuantumAI may have used a "news" website to disseminate false and misleading information about itself, and to promote its cryptocurrency trading services to the Hong Kong public.

At its request, the SFC said the Hong Kong Police Force took action to block QuantumAI's website and remove relevant social media pages.

The SFC placed the websites on its Suspicious Virtual Asset Trading Platforms Alert List on the same day.