The “Floki Staking Program” and the “TokenFi Staking Program,” two dubious investment products that purport to offer high annualized return targets of 30% to over 100%, are the subject of a warning from the Securities and Futures Commission (SFC) today.
The SFC has not approved the two goods for sale to the general public in Hong Kong (Notes 1 and 2). The administrator of the two products has also not been able to demonstrate to the SFC’s satisfaction how the high annualised return targets could be achieved.
The SFC notes that information regarding these two products and the products themselves are accessible to the Hong Kong public via the internet. This led the SFC to post the two products and their related information.
The SFC wishes to warn investors of “staking” arrangements relating to virtual assets. As these arrangements could amount to unauthorised collective investment schemes and may be highly risky (Note 3), their investors have very limited or no protection under the Securities and Futures Ordinance (SFO) and they may lose all their investments. Investors should also be cautious about investment products that claim to offer “too-good-to-be-true” returns and stay vigilant when making investment decisions.
The SFC will take all appropriate actions where there is any breach of the law.