Unauthorized Staking Programs: SFC Flags Floki Protocol
The Hong Kong Securities and Futures Commission (SFC) has issued a warning to the public about two investment products called the “Floki Staking Program” and “TokenFi Staking Program,” which are associated with the Floki protocol. These products claim to offer staking services and promise annual returns ranging from 30% to over 100%. The SFC emphasizes that neither of these products has been authorized for public sale in Hong Kong.
Staking is a process where users can earn rewards by contributing to the security of a blockchain. By staking their cryptocurrency, users contribute to a staking pool, similar to depositing money into a savings account. The proof-of-stake mechanism ensures the security and decentralization of the blockchain by validating transactions.
The SFC highlights that the entities behind these two products have not provided sufficient evidence to support their high return targets. In response, the Floki team addressed the SFC’s concerns during a live spaces session on the X social media platform. They stated that the SFC’s only complaint is that the staking programs are performing too well. The Floki team explained that they collaborated with a marketing agency for the promotion of these programs and believed that they had received approval. They are unsure if the marketing campaign will continue in Hong Kong at this time.
The Floki team reassured investors that they will comply with all the necessary requirements and work with Hong Kong authorities. The SFC points out that information about these products is available online to the Hong Kong public. As a result, on January 26, 2024, the SFC included both products and their details on the Suspicious Investment Products Alert List. The SFC urges caution to investors regarding staking deals involving virtual assets, as they may constitute unauthorized collective investment schemes. These deals come with high risks, and investors may have limited protection under the Securities and Futures Ordinance (SFO), potentially resulting in a complete loss of their investments.
The SFC also emphasizes its commitment to enforcing regulatory standards and protecting investors from fraudulent schemes. It warns that any violation of the law, including promoting unlicensed collective investment schemes, will face appropriate legal action.
7 thoughts on “Unauthorized Staking Programs: SFC Flags Floki Protocol”
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It’s incredibly risky to invest in unregulated staking deals. People need to understand that there’s no guarantee of returns, and they might end up losing everything. Don’t gamble with your hard-earned money!
Say no to unauthorized schemes! Let’s follow SFC’s warning and protect ourselves from potential scams.
SFC, I appreciate your dedication to enforcing regulatory standards. Together, we can create a safer investment environment.
The Floki team’s response is laughable! 🙄 Blaming a marketing agency for the unauthorized promotion? They knew exactly what they were doing. Hong Kong authorities should not tolerate such deceptive practices.
Thank you, SFC, for addressing the concerns and shedding light on the situation. Transparency is key in the investment world!
These investment programs sound too good to be true! It’s no surprise that they haven’t been authorized for sale. People need to be smarter with their money and not fall for these unrealistic promises.
Thank you, Floki team, for taking the SFC’s concerns seriously and assuring investors of compliance.