Hong Kong Regulator Flags Floki and TokenFi Staking Programs

Hong Kong securities watchdog has warned the public against two “suspicious investment products” related to crypto.

Official looking man and a Floki mascot having a standoff on a zebra crossing.
Created by Gabor Kovacs from DailyCoin
  • The SFC has issued a public warning against two crypto-related products.
  • The regulator added the products to its warning list.
  • Investors were reminded that they would have “very limited” or “no” protection if they lost money.  

Hong Kong’s securities watchdog has cautioned the public against “suspicious investment products” tied to Floki and TokenFi staking services.

The warning follows an announcement by the Floki team last month that Floki and its sister project TokenFi were set to “dominate Hong Kong in aggressive 2-month marketing campaign.” The campaign saw both tokens flood advertisement boards on tramcars, digital city bus screens, and office towers.

SFC Adds Floki and TokenFi Products to Warning List

In a press release dated January 26, Hong Kong’s Securities and Futures Commission (SFC) warned the public about the “Floki Staking Program” and “TokenFi Staking Program”, stating that both investment products claimed to offer annualized return targets of “30% to over 100%.”

The SFC noted that the two products were active in the local market without the regulator’s authorization. Further, the securities watchdog faulted the administrator of the two products for failing to demonstrate to the “SFC’s satisfaction” how the annualized 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 on the SFC’s Suspicious Investment Products Alert List on 26 January 2024,” the statement read.

The SFC reiterated that investors would have “very limited” or “no protection” under the Securities and Futures Ordinance (SFO) if they fell victim to dubious “staking arrangements” related to virtual assets.

Read about 2024 Bitcoin Conference coming to Hong Kong:
2024 Bitcoin Conference Set for Hong Kong in May

Stay updated on Hong Kong’s approach toward stablecoin regulation:
Hong Kong Steps Up Stablecoin Regulatory Efforts

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.