Hong Kong Securities and Futures Commission Warning: How "AI Quantum Trading" with Monthly Returns of 3-8% Becomes an Investment Trap

The Hong Kong Securities and Futures Commission has just issued a warning, alerting the public to an investment scam promoted by Jin Feng Lai and Angel Guardian Alliance Technology Limited. The scam claims to leverage AI and quantum high-frequency trading, promising stable returns of 3%-8% per month, but investors face difficulties when attempting to withdraw funds. This is not an isolated case but a typical example of an investment trap.

The “Perfect Packaging” of the Scam

Why is this scam easily confusing?

This investment product uses several highly effective marketing elements:

• Popular concepts like AI and quantum, sounding very technological and high-end
• High-frequency trading itself is a real trading strategy, but it’s used to package false promises
• A monthly return of 3%-8% seems reasonable, unlike exaggerated claims of “1% daily earnings”
• Claiming to generate such returns steadily—this is the biggest lie

Why is this a warning sign of fraud?

From the Securities and Futures Commission’s warning, several key issues can be identified:

1. Investors encounter difficulties when trying to withdraw funds—this is the most direct sign of fraud
2. No mention of any compliance license or regulatory approval
3. The combination of high return promises and withdrawal difficulties is a standard pattern in financial scams

What are the legitimate players doing?

Interestingly, during the same period, legitimate virtual asset service providers in Hong Kong are making steady progress:

All of these are institutions rigorously reviewed by the Hong Kong Securities and Futures Commission. Their development paths are clear: first obtain licenses, then gradually expand services, and operate under regulatory constraints. This is completely opposite to the scammer’s approach.

What should investors do?

Red flags to identify scams:

• Promising fixed high returns, especially short-term promises like monthly returns
• Unable to clearly explain fund flow and trading methods
• Withdrawal difficulties or delays with various excuses
• No licensing or inability to verify regulatory status
• Using buzzwords like AI, quantum, blockchain to obscure the true business

Correct approach:

Choose licensed institutions for investment or trading. In Hong Kong, you can verify through the Securities and Futures Commission’s licensee search system. Licensed institutions under listed companies like Delin Securities, or industry-recognized organizations such as HTX Ventures, are more reliable options.

Summary

The essence of this scam is simple: package false promises with technological concepts, then get exposed when investors request withdrawals. The warning from the Hong Kong Securities and Futures Commission indicates that regulators are continuously monitoring such risks. Meanwhile, the legitimate virtual asset ecosystem in Hong Kong is developing healthily—licensed institutions are expanding services, and investment funds are gaining recognition.

For investors, the choice is clear: trust those who are rigorously reviewed and regulated, or risk losing everything by engaging in scams that promise the impossible. High returns are not the problem; the issue is organizations promising high returns without explaining how they can be achieved.