Hong Kong Regulator Flags Floki and TokenFi Staking Programs

Hong Kong securities watchdog has warned the public against two โ€œsuspicious investment productsโ€ 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 โ€œvery limitedโ€ or โ€œnoโ€ protection if they lost money.  

Hong Kong’s securities watchdog has cautioned the public against โ€œsuspicious investment productsโ€ 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 โ€œdominate Hong Kong in aggressive 2-month marketing campaign.โ€ 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 Kongโ€™s Securities and Futures Commission (SFC) warned the public about the โ€œFloki Staking Programโ€ and โ€œTokenFi Staking Programโ€, stating that both investment products claimed to offer annualized return targets of โ€œ30% to over 100%.โ€

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The SFC noted that the two products were active in the local market without the regulatorโ€™s authorization. Further, the securities watchdog faulted the administrator of the two products for failing to demonstrate to the โ€œSFCโ€™s satisfactionโ€ how the annualized return targets could be achieved.

โ€œThe 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 SFCโ€™s Suspicious Investment Products Alert List on 26 January 2024,โ€ the statement read.

The SFC reiterated that investors would have โ€œvery limitedโ€ or โ€œno protectionโ€ under the Securities and Futures Ordinance (SFO) if they fell victim to dubious โ€œstaking arrangementsโ€ 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 Kongโ€™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 is a crypto reporter at DailyCoin covering breaking news. Brian has minor holdings in Bitcoin and Ethereum.

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