The Hong Kong Securities and Futures Commission (SFC) has issued a public warning against two high-risk cryptocurrency staking programs – “Floki Staking Program” and “TokenFi Staking Program.” These schemes, promising annualized returns between 30% and over 100%, have raised significant concerns due to their unverified high return claims and lack of authorization from the SFC.
Unregulated and High-Risk Investments
The SFC alerts that neither “Floki Staking Program” nor “TokenFi Staking Program” have received the necessary authorization to be offered to the public in Hong Kong. The regulatory body also highlighted that the administrators of these schemes failed to provide satisfactory explanations for their extremely high annualized return targets.
Accessible yet Suspicious
Despite their lack of authorization, these programs are accessible to the Hong Kong public via the internet. Consequently, the SFC has listed both “Floki” and “TokenFi” on its Suspicious Investment Products Alert List as of January 26, 2024.
Investor Caution Advised
The SFC urges investors to exercise caution with virtual asset staking arrangements. These schemes might constitute unauthorized collective investment schemes and carry substantial risks. Under the Securities and Futures Ordinance (SFO), investors engaged in such schemes have limited or no protection and face the risk of losing their entire investment.
Beware of Unrealistic Promises
Investors are cautioned against engaging with investment products offering seemingly unrealistic returns. The SFC emphasizes the importance of vigilance and informed decision-making in investment endeavors.
Enforcement Actions
The SFC reiterates its commitment to take appropriate legal actions against any entities or individuals breaching financial regulations.
Stay Informed and Safe
Investors are encouraged to consult the SFC’s official channels for updates on suspicious investment schemes and to stay informed about safe investment practices.
Source: https://blockchainreporter.net/sfc-issues-warning-against-high-risk-crypto-staking-programs-floki-and-tokenfi/