Hong Kong’s Securities and Futures Commission (SFC) today warned the public of suspicious investment products named “Floki Staking Progr
Hong Kong’s Securities and Futures Commission (SFC) today warned the public of suspicious investment products named “Floki Staking Program” and “TokenFi Staking Program”, both of which involve cryptocurrency staking services and claim to offer high annualised return targets of 30% to over 100%.
The two products have not been authorised by the SFC for offering to the Hong Kong public. The administrator of the two products has also not been able to demonstrate to the SFC’s satisfaction how the high annualised return targets could be achieved.
The SFC notes that information regarding these two products and the products themselves are accessible to the Hong Kong public via the Internet. This led the SFC to post the two products and their related information on the SFC’s Suspicious Investment Products Alert List on 26 January 2024.
The regulator warns investors of “staking” arrangements relating to virtual assets. As these arrangements could amount to unauthorised collective investment schemes and may be highly risky, their investors have very limited or no protection under the Securities and Futures Ordinance (SFO) and they may lose all their investments. Investors should also be cautious about investment products that claim to offer “too-good-to-be-true” returns and stay vigilant when making investment decisions.
The SFC will take all appropriate actions where there is any breach of the law.
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