coinspress.com
Hong Kong's Securities and Futures Commission (SFC) has issued a public warning about the unauthorized status of two investment products associated with the Floki ecosystem – the "Floki Staking Program" and the "TokenFi Staking Program."
These programs, promising annualized returns of 30% to over 100%, lack the necessary authorization for public sale in Hong Kong, according to the regulator.
The SFC is concerned about the ambitious return targets of these staking programs and the absence of clear explanations on their strategies.
In response, the Floki team defended their programs, citing exceptional performance. However, they provided no specific details about discussions with the SFC and did not confirm the continuation of their marketing campaign in Hong Kong.
The SFC’s advisory warns the public against engaging in staking deals involving digital assets due to potential unauthorized collective investment schemes, posing risks for investors.
Both the Floki Staking Program and TokenFi Staking Program have been added to the Suspicious Investment Products Alert List as of January 26, 2024.
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The SFC emphasizes its commitment to enforcing regulatory standards and protecting investors from fraudulent schemes.
Breaches, including the promotion of unlicensed collective investment schemes, will be met with legal actions. This underscores the importance of adhering to regulatory guidelines in the cryptocurrency and blockchain space.