The Executive Committee of the National Securities Market Commission (CNMV) has revealed the opening of a sanctioning file against the American company Twitter International, now known as authorized through its online platform. Specifically, the supervisor of the Spanish markets considers that Elon Musk’s social network may have incurred a continued violation classified as very serious by not checking whether QUANTUM AI was authorized to provide investment services by the CNMV. Furthermore, Twitter has also not verified whether the aforementioned company appeared on the list of entities warned by the CNMV or by foreign supervisory bodies, all in relation to the payment advertisements published by Twitter/X in the month of December 2023.
According to current regulations, the commission of very serious infractions may include a fine of up to 10% of the annual turnover of the offending entity, which represents a penalty of up to 340 million euros since the company’s turnover reached 3.4 billion euros. In his argument, The CNMV points out the alleged misuse by Quantum AI and Twitter “of the image of public figures in Spainby publishing tweets simulating news where one of these characters reveals having obtained high returns using an application created by one of these entities.”
The CNMV justifies its decision by referring to “a context of growing impact of financial fraud”, with high media relevance that coincides “with the publication of Quantum AI advertisements on platform existence of an alleged scam by unauthorized entities warned by the CNMV”.
In your statement dated December 12, 2023the CNMV already warned “about a financial fraud spread on social networks using the image of famous people and the media”, to warn that it would exercise “all the possibilities of supervision and sanction granted by current legislation, among others, the responsibility of the websites, media and social networks that spread this advertising without verifying that the advertiser has a license to offer investment services and that it is not warned as a financial beach bar or pirate entity. At that time, the CNMV already expressly pointed out the entity Quantum AI among the companies that were committing this alleged fraud. and that they had already been the subject of specific warnings from the CNMV.
Twelve months ago, the CNMV noticed the use of deepfake, that is, the use of “false videos in which the voice of a person or a public official is simulated to recommend these fraudulent investments”, false information that was also accompanied of “designs and appearance of online media to accredit false information about these characters.” At that time, the CNMV reminded all investors that the use of celebrities “with promises of easy and quick profits or the simulation of real media or images are unequivocal signs that it is a financial fraud Therefore, it recommends that no type of personal data (including email or telephone number), much less funds, be provided to entities that are not duly registered in the CNMV records.
Fines for very serious infractions can also be sanctioned with “five times the gross profit obtained or the loss avoided as a consequence of the acts or omissions of which the infraction consists”, or 5% of either the own resources of the offending entity. or of all the total funds, own or those of others, used in the infringement.
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