Floki Staking and TokenFi Staking Added to SFC’s Alert List Over Risk Concerns
by Fintech News Hong Kong January 29, 2024The Securities and Futures Commission (SFC) issued a public warning about two cryptocurrency investment schemes, named “Floki Staking Program” and “TokenFi Staking Program.”
These programs claim to offer annualised returns ranging from 30 percent to over 100 percent. The SFC has not authorised these products for public offering in Hong Kong. The administrators of these products have not demonstrated to the SFC how such high returns can be realistically achieved.
The SFC has observed that information and access to these products are available online to the Hong Kong public. As a result, the “Floki Staking Program” and the “TokenFi Staking Program” have been included on the SFC’s Suspicious Investment Products Alert List as of 26 January 2024.
The Commission advises the public to exercise caution with investment products related to virtual asset “staking.” Such arrangements might be part of unauthorised collective investment schemes and can pose high risks.
Investors in these schemes might have limited or no protection under the Securities and Futures Ordinance (SFO) and could risk losing their entire investment. The Commission reaffirms its commitment to enforcing the law and protecting investors from fraudulent investment schemes.
Featured image credit: Edited from Unsplash
