Hong Kong has issued a warning regarding two suspicious investment offerings named "Floki Staking Program" and "TokenFi Staking Program." These programs, enticing investors with promises of sky-high annual returns ranging from 30% to over 100%, have caught the attention of the Securities and Futures Commission (SFC)for their dubious nature.

Concerns over Crypto Staking Programs

The SFC, responsible for overseeing financial activities in Hong Kong, has raised concerns over the legitimacy of these staking programs. According to the watchdog, neither "Floki Staking Program" nor "The TokenFi Staking Program" has received authorization from the SFC to offer services to Hong Kong's public.

Additionally, the administrators of these programs have allegedly failed to provide satisfactory explanations regarding the feasibility of achieving such lofty returns. The SFC has cautioned against engaging in "staking" arrangements involving virtual assets, as they may constitute unauthorized collective investment schemes.

Compliance and Enforcement

The regulator noted that investors participating in such offers would not be protected under the SFO's regulations, leaving them vulnerable to substantial financial losses.

The SFC has emphasized its commitment to enforcing regulatory standards and protecting investors from fraudulent schemes. It mentioned that any breach of the law, including the promotion of unlicensed collective investment schemes, will be met with appropriate legal action.

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