Twitter slapped with five-million-euro fine by regulator in Spain for advertising 'financial scams' without verifying their legality

Spain's national securities market commission (CNMV) will fine Twitter (now known as X) five million euros for violation classified as very serious - failing to comply with its duties to cooperate in investigations regarding advertisements of 'chiringuitos financieros' (unauthorised financial operators). This was reported in the BOE official state gazette on Thursday.

According to the CNMV, Twitter failed to properly respond to a request concerning adverts for the company Quantum AI.

The disciplinary proceedings state that Twitter did not verify Quantum AI's authorisation by the CNMV to offer financial services. It also did not check whether it was on the list of entities warned for operating without a licence.

This lack of verification occurred despite a formal request sent by the regulator on 8 November 2023, as part of its efforts to protect investors from potential fraud or financial scams spread on digital platforms.

X has waived the right to bring an administrative appeal and the aforementioned sanctioning decision has become final. This is the seventh highest sanction imposed by the CNMV since there have been public records of its sanctioning resolutions.

Opening of disciplinary proceedings

The CNMV agreed to open a sanctioning file against Twitter at the end of 2024. The body stated that the executive committee had taken this decision on 13 December due to a very serious continuous violation linked to Quantum AI's paid advertisements published on the social platform in December 2023.

The CNMV highlighted that, in the context of a "growing impact" of financial fraud, the media attention surrounding the suspected scam by unauthorised entities, coinciding with Quantum AI adverts on X, was significant.

These 'chiringuitos financieros' reportedly used images of famous Spanish personalities to publish tweets simulating news claiming that one of these celebrities had earned high returns using an app created by one of these entities.

Chronologically, at the end of November 2023, the CNMV warned about several Quantum AI websites using images of Antonio Resines and El País. Then-president of the CNMV Rodrigo Buenaventura said that they were investigating Twitter for allowing such advertising.

The CNMV then issued a statement in mid-December 2023 in which it indicated that it would exercise "all the supervisory and sanctioning powers granted to it by current legislation, including liability for websites, media and social media that publish such adverts without verifying that the advertiser is licensed to offer investment services and is not listed as a financial scam or unauthorised entity".

Quantum AI was explicitly mentioned as one of the companies that were committing this fraud.

CNMV warnings about 'chiringuitos financieros' can be consulted on its website and investors can direct inquiries to the investor helpline at 900 535 015 or via the consultation form. In addition, the CNMV website offers a search engine for entities that have been warned and a guide with tips for investors on how to avoid 'chiringuitos financieros'.