SFC Issues Warning Against Unregulated Floki and Tokenfi Crypto Staking Programs
The Securities and Futures Commission (SFC) in Hong Kong has issued a public warning regarding the “Floki Staking Program” and “Tokenfi Staking Program,” two cryptocurrency investment products that promise high returns. Despite their enticing offers, these programs have not obtained the necessary authorization for public offering in Hong Kong, making them potentially risky for investors.
Both programs are associated with the Floki ecosystem and offer cryptocurrency staking services with annualized returns as high as 100%. However, the SFC has found that the administrator of these products cannot explain how they achieve such high returns, casting doubt on their legitimacy.
As a result, the SFC has included both the “Floki Staking Program” and “Tokenfi Staking Program” in their Suspicious Investment Products Alert List. The SFC has warned investors about the risks of participating in unregulated schemes and emphasized the potential for total loss with minimal protection under the law.
Floki Team Responds to SFC’s Concerns
The Floki team has addressed the SFC’s concerns and acknowledged the high performance of their programs. They have confirmed collaboration with a marketing agency for promotional purposes but admitted to lacking clarity on the continuation of their campaign in Hong Kong. They have committed to complying with local regulations.
However, the SFC has made it clear that it intends to take legal action against any violations of the law, including the promotion of unlicensed collective investment schemes.
Conclusion
Investors are cautioned against participating in the unregulated “Floki Staking Program” and “Tokenfi Staking Program,” which offer enticing yet potentially risky returns. The SFC has identified these programs as suspicious and unauthorized for public offering. It is important to be wary of investment opportunities that seem too good to be true and to consider the potential risks and lack of legal protection. The SFC will take appropriate action against any breaches of the law to protect investors in Hong Kong.
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