The Securities and Futures Commission (SFC) has issued a warning to the public about an investment product called “LENA Network” that involves virtual asset-related staking, borrowing, and lending arrangements, promising high returns to investors. The SFC clarifies that this product has not been authorized for offering to the Hong Kong public. Despite lacking authorization, information about the product and access to it are available to the Hong Kong public online. To address this, the SFC has included the product and related information on its Suspicious Investment Products Alert List as of May 13, 2024.
The SFC specifically cautions investors about the risks associated with “staking” arrangements involving virtual assets. These arrangements may constitute unauthorized collective investment schemes and pose significant risks, leaving investors with little or no protection under the Securities and Futures Ordinance (SFO) and the potential for complete loss of their investments. The SFC advises the public to exercise caution and skepticism when encountering investment opportunities that appear “too good to be true” and to remain vigilant when making investment decisions. The SFC pledges to take appropriate actions in the event of any violations of the law.
Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR86