Quantum Deception: A $2 Billion Fraud Built on Fake Products, Fake Revenue, and Fake Partnerships

Initial Disclosure: Affiliates of Capybara Research take market positions in the companies we report on and our investigative journalism is funded by the trading profits of these affiliates. This report is not financial advice. Do your own due diligence. Please read our full disclaimer at the bottom of this report.

Introduction

We believe QUBT is a rampant fraud and that shareholders will likely be left with nothing. Since the company’s inception, it has fabricated revenue, misrepresented its products, and issued a steady stream of false press releases. To conceal the fraud, QUBT even included a clause in employee separation agreements prohibiting employees from speaking with the SEC.

Key Findings

Fake Products

“They insinuated that there were products that were farther along than they were, to lead the public to believe they had quantum capabilities they did not, and products that were in customers’ hands when they weren’t.” - Former QUBT employee

“[It] would take a small army quite some time to make what they currently have work or become a viable product. There’s been no evidence from the company. There’s been no progress. They haven’t even entered the game. There is no validation that they can run with any interesting results. Until they do that, it’s just a glorified university project.” - Former QUBT executive

False and Misleading Press Releases

Former employees and others associated with QUBT say it was common knowledge among employees that the CEO was doing anything he could to pump the share price, including issuing false press releases that lied about the company’s products, revenue deals, and partnerships.

• QUBT claims to have a “longstanding relationship” with NASA, but NASA personnel and government contract records confirm that this is false.
• QUBT has a single contract with NASA, valued at $26,000. The contract was for generic “computer programming,” and QUBT was the sole bidder.
• QUBT falsely claims to have won two contracts directly with NASA and at least four subcontracts “awarded by NASA.”
• NASA confirmed to us that it has no relationship with QUBT beyond the single $26,000 “computer programming” contract noted above.
• We spoke with NASA and the prime contractors named in QUBT’s press releases, and we found that all of the press releases are deliberately misleading or include outright lies.
• The evidence suggests that QUBT bids on low-value, NASA-related contracts for the sole purpose of pumping its stock via misleading press releases.
• In several cases, QUBT bid on small subcontracts from companies that do work with NASA. In each case, the prime contractor confirmed that QUBT was the sole bidder and the contracts were for small amounts. NASA confirmed that it played no role in issuing the subcontracts.
• QUBT promoted each of these subcontracts as significant and related to quantum computing. In reality, the contracts were very small, unrelated to quantum computing, and were awarded to QUBT because they were the only bidders.
• In a transparent attempt to hide its fraud, QUBT recently removed some false and misleading press releases from its website.

Fake Deals and Fake Revenue

For years, QUBT has struggled to generate revenue because it lacks real products. QUBT’s solution to this problem was to sign fake deals with undisclosed related parties. The sole purpose of these deals was to deceive investors through promotional press releases containing outright lies.

• QUBT is currently being sued by a former partner for breach of contract and fraud. The plaintiff claims QUBT’s first three revenue deals were completely fake and that QUBT never even sent invoices for the deals.
• One of these deals was with Millionways Inc., a purported AI company. Undisclosed to investors, Millionways Inc. was a related party. One of QUBT’s founders was involved with Millionways.
• QUBT later announced a letter of intent to acquire Millionways. As part of the deal, QUBT paid Millionways $500,000 via an unsecured note. The deal was never completed, and QUBT has been quietly marking down the value of the note because it will likely never be repaid.
• In 2022, QUBT announced a deal with Quad M Solutions Inc., an OTC-listed company with ties to multiple stock frauds.
• Undisclosed to investors, Quad M was a related party. QUBT’s CEO served as a director of Quad M, and the co-founders of QUBT were deeply involved in Quad M and are long-time business associates of Quad M insiders and investors.
• In 2022, QUBT signed a memorandum of understanding with Quad M claiming that it would generate $5–10 per employee per month for QUBT. Unsurprisingly, the deal never materialized and generated no revenue.

Foundry Deception

• In September 2023, QUBT claimed to have chosen a site for its new fab, a 5-acre plot in the ASU Research Park. Park management confirmed that QUBT inquired about the 5-acre parcel but never followed up and never attempted to purchase the property. Now, more than a year after QUBT’s announcement, the 5-acre parcel remains empty, and it still belongs to the original owner.
• In October 2024, QUBT claimed to have opened the foundry it announced in September of the prior year. However, the company did not open a fully operational foundry; instead, it opened a small R&D lab in a leased office space.
• QUBT’s R&D lab is in an office building that is not suitable for industrial use cases.
• QUBT’s R&D space does not have a cleanroom, which is required to produce commercial-quality TFLN chips.

• Quantum Computing Inc
• QUBT
• Quantum Computing