The Spanish National Securities Market Commission (CNMV) has initiated a sanctioning file against Twitter International Unlimited Company, currently known as X, for the alleged dissemination of advertisements from unauthorized financial entities on its platform. According to the regulator, between October and November 2023, Twitter allowed the publication of campaigns related to Quantum AI, an entity designated as a “financial scam” and previously warned about by the CNMV.
A case that highlights digital advertising
The file, approved on December 13, 2024, accuses Twitter/X of committing a serious infraction by failing to verify whether Quantum AI was authorized to offer financial services in Spain. Furthermore, the platform allegedly ignored this entity’s inclusion on alert lists issued by both the CNMV and other international supervisory bodies.
According to the CNMV, the advertisements for Quantum AI published on X would have used the images of well-known public figures in Spain to attract potential investors. These campaigns promised high returns through supposedly innovative financial applications, but were actually part of a fraudulent scheme designed to siphon money from unsuspecting users.
A context of growing financial fraud
The initiation of this file comes at a time of great concern over the rise of financial fraud on social media. The CNMV had already warned in December 2023 about this issue, highlighting how digital platforms have become key tools for spreading scams.
In that statement, the regulator emphasized that it would take action against any digital medium that did not adequately verify its advertisers. “Platforms have a responsibility to ensure that advertisers possess licenses to offer investment services and that they are not flagged as fraudulent entities,” the CNMV stated at the time.
Quantum AI: an emblematic case
Quantum AI, an entity that had already been warned by the CNMV and other international supervisory bodies, has been identified as responsible for a suspected massive scam. According to the regulator, this entity employed deceptive marketing strategies on social media, such as simulating fake news with testimonials from known figures, to lure investors with promises of unreal economic gains.
This case highlights how “financial scams” have adapted to the digital environment, exploiting the lack of strict regulation on social platforms to reach a broad audience.
What does the sanctioning file imply?
Although the outcome of the file is still undefined, it could lead to significant financial penalties for Twitter/X if the infractions are confirmed. The CNMV has stated that the opening of this procedure aims to reinforce the responsibility of digital platforms in monitoring advertising content.
Additionally, the file could set an important precedent for the oversight of financial advertising on social media, underlining the need for stricter tools and protocols to prevent these platforms from being used to disseminate scams.
A call for regulation of social media
This case affects not only Twitter but also raises broader questions about the regulation of the digital ecosystem. In a context where more and more users consume information and make investments through social platforms, the lack of adequate controls can have serious economic and social consequences.
The CNMV has made it clear that it will continue to exercise its oversight role to protect consumers and ensure transparency in financial markets. At the same time, this file highlights the need for greater collaboration among regulators, digital platforms, and governments to address the challenges of fraud in the digital age.
via: Social Media News