The CNMV has imposed a €5 million fine on Twitter, now X, after opening sanctioning proceedings against the platform in December 2024 for failing to comply with its legal obligations regarding a series of financial advertisements. Specifically, the fine refers to ads promoting Quantum AI, which the CNMV considers to be a “financial scam.”
At the end of 2023, Fundación Maldita.es had already warned about at least 165 ads on Twitter that impersonated Spanish celebrities and media outlets to promote entities offering fake cryptocurrency investments. These ads reached 76 million impressions and, in most cases (83%), redirected users to “Quantum AI”, an entity identified by the National Securities Market Commission (CNMV) as a “financial scam” and, since November 2023, classified by the Spanish regulator as a company not authorized to provide investment services.
Why the sanction is against Twitter
By using the X Ads promotion system, the Securities Markets and Investment Services Act requires Twitter to verify that “Quantum AI” had the “authorization to provide investment services” before allowing the ads to circulate. In addition, Twitter was also required to check that advertisers were not included among the “entities warned against by the CNMV or by foreign supervisory bodies,” and Quantum AI had been under a warning since late 2023 for “alleged fraud.”
The CNMV analyzed the potential breach of these two obligations set out in Article 246 and concluded that Twitter committed a “very serious infringement", imposing a €5 million fine.
The resolution published in the Boletín Oficial del Estado indicates that Twitter has waived its right to file an administrative appeal, although it could still challenge the decision before a judicial body (specifically, the Contentious-Administrative Chamber of the National High Court). If it does so, an independent judge would review whether the sanction imposed by the administration was lawful and correct.
Fundación Maldita.es analyzed 165 Twitter ads promoting fake investments that were seen more than 70 million times
Hundreds of ads following the same pattern flooded X in Spain between late 2023 and early 2024. Using the image of well-known Spanish public figures as bait and media outlets to lend credibility, these ads—published by accounts with a blue checkmark—promoted websites offering fake cryptocurrency investments.
Website of a fake interview with Martiño Rivas promoting “Quantum AI” and impersonating El País
Lola Índigo, Martiño Rivas, and Cristina Pedroche were among the celebrities most affected by these fraudulent posts analyzed by Maldita.es, which reached an average of 368,000 users and were viewed more than 76 million times in total. Quantum AI was the most frequently promoted platform.
Maldita.es also examined X’s lack of action and inconsistent moderation in response to ads that may be considered illegal due to impersonation, misleading advertising, and the promotion of an entity identified as a “financial scam", as well as for violating its own internal rules. X stopped only 35% of the ads, offering up to seven different justifications for content following exactly the same pattern.