Twitter International must pay a €5 million fine for failing to block ads published by Quantum AI, which used the identities of celebrities and media outlets to promote investments through the social network. The National Securities Market Commission (CNMV) has completed the conclusion of the file it started against the company two years ago and published the sanctions in the Official Gazette today.
Specifically, the Spanish market regulator has accused Twitter of violating a ban on advertising without checking whether an advertiser is authorized to offer investment services. Quantum AI used images of celebrities and spread fake news as if published by media such as El Pais to attract investment from customers.
CNMV explains that suspected fraud will be disclosed through the aforementioned platforms.
CNMV filed a complaint against Twitter in 2023 for this reason, but the company has not filed a complaint. In particular, the agency warned in a statement on December 12 of the same year about “financial fraud spread on social networks using the images of celebrities and media outlets,” and said it would “enforce all possible oversight and sanctions allowed by current law, including the liability of websites, media and social networks that spread this advertisement without checking whether the advertiser has a license to offer investment services and that it has not been flagged as a financial beach bar or piracy.” It specifically mentions an entity called Quantum AI, which is among the companies committing this alleged fraud and was already the subject of a specific warning from the CNMV.
The CNMV has recently accused some social networks, particularly Twitter and TikTok, of not cooperating in the fight against financial beach bar scams promoted through social networks. It’s not like other platforms like Meta or Google work together.
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