<

Hong Kong Regulator Questions Floki and TokenFi Staking Programs for High Promised Returns

The Hong Kong Securities and Futures Commission (SFC) has issued a warning to the public about two suspicious investment products that involve cryptocurrency staking services and promise unrealistic returns.

The products, named “Floki Staking Program” and “TokenFi Staking Program”, claim to offer annualised return targets of 30% to over 100%, depending on the amount and duration of staking. However, the SFC said that the products have not been authorised by the regulator for offering to the Hong Kong public, and that the administrator of the products has failed to show how the high returns could be achieved.

The SFC also noted that the products and their related information are accessible to the Hong Kong public via the internet, despite Floki stating on its official website that it is not open to Hong Kong users. The regulator has added the products to its Suspicious Investment Products Alert List on 26 January 2024.

The SFC urged investors to be wary of “staking” arrangements relating to virtual assets, which could amount to unauthorised collective investment schemes and may pose high risks. Investors who participate in such arrangements have very limited or no protection under the Securities and Futures Ordinance (SFO) and may lose all their investments. The SFC also advised investors to be cautious about investment products that claim to offer “too-good-to-be-true” returns and to stay vigilant when making investment decisions.

The SFC said that it will take all appropriate actions where there is any breach of the law.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

Follow us on Reddit

You might also like

LATEST NEWS

LASTEST NEWS