The National Securities Market Commission (CNMV) decided on the fine 5 million euros for Twitter (now referred to as “X”) for continued infringements classified as very serious by non-compliance with the co-operation obligations regarding the advertising of “Financial Beach Bar”. … The Official Gazette (BOE) reported this Thursday.
According to the regulator, the company failed to properly address the relevant requirements and breached its cooperation obligations. Announcement about Quantum AI.
The sanctions file details that Twitter did not verify whether Quantum AI was licensed by the CNMV to provide financial services or whether it was on a list of entities flagged for operating without a license.
This lack of verification occurred despite a formal request within the framework of action from the supervisory authority on 8 November 2023. Protecting investors from possible fraud Or the financial fraud that runs rampant on digital platforms.
Specifically, the body chaired by Carlos San Basilio decided to sanction the new “X” for failing to fulfill its obligations to support the CNMV. Quantum AI is authorized to provide investment services Confirm that the company is not on the list of entities warned by the CNMV or other foreign supervisory authorities in connection with the announcement contained in the requirements sent by the CNMV on November 8, 2023.
Following the waiver of the interested party’s right to file an administrative appeal, the aforementioned sanctioning resolution became final in that measure, without prejudice to the possibility of challenge before the Administrative Litigation Tribunal of the National Court.
This is the seventh highest sanction imposed by the CNMV, as public records of the CNMV’s sanctions resolution remain.
Open sanctions file
At the end of 2024, the CNMV agreed to open a sanctions file against the Twitter platform (now called “X”) for possible violations of its obligations. Advertisement posted by “Financial Beach Bar” It’s like quantum AI on a network.
In a statement, the Stock Market Supervisory Authority detailed that the Executive Committee took this decision on December 13 in view of the possibility of very serious and continuing violations under Articles 290.1 and 290.2 of the Securities Markets and Investment Services Act. Because it neglected its obligation to check whether it was a quantum AI. was authorized to provide investment services and was included in the list of alerted companies.
These are all related to the Quantum AI paid ads published on the aforementioned social networks in December 2023.
In this sense, the CNMV emphasized that: The “growing impact” of financial fraudthe publication of quantum AI advertising on the platform and its relevance to the media should be emphasized at the same time.
Use images of celebrities
In this alleged fraud, ‘Financial Beach Bar’ said They used the image of Spanish public figures Publish a tweet on platform “X” simulating news claiming that one of these celebrities has made significant profits using an application created by one of these entities.
Therefore, regarding the chronological order of what happened so far, it is noteworthy that the CNMV notified about several quantum AI “chiringuito” websites at the end of November 2023. They used the image of Antonio Regines and “El Pais”.
In the same month, then-CNMV President Rodrigo Buenaventura warned that regulators were investigating the social network “X” for allowing advertising of this type of companies (especially quantum AI, but also other types of unauthorized companies).
CNMV then issued the following statement in mid-December 2023: “We will use all our supervisory possibilities.” The sanctions granted by the current law, among other things, make websites, media and social networks responsible for disseminating this advertisement without ensuring that the advertiser has a license to offer investment services and is not flagged as a financial beach bar or piracy.
The document specifically names the Quantum AI entity among the companies that committed this alleged fraud and were already the subject of a specific warning from the CNMV.
warning of CNMV talks about “financial beach bar” Inquiries can be made on the website and investors can contact us via the Investor Services number 900 535 015 or through the inquiry form.
In addition, the CNMV website provides a search engine for companies that have been warned and a list of advice for investors to avoid “financial beach bars.”
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