Hong Kong SFC Issues Warning Against Suspicious Crypto-Related Investment Product LENA Network

Hong Kong's Securities and Futures Commission (SFC) has issued a warning to the public regarding a suspicious investment product called "LENA Network." The product involves virtual asset-related staking, borrowing, and lending arrangements and promises high returns to investors.

The SFC emphasized that the product has not received authorization from the regulator to be offered to the Hong Kong public. As a result, the product and its associated information have been added to the SFC's Suspicious Investment Products Alert List as of May 13, 2024.

The SFC specifically cautioned investors about the risks associated with "staking" arrangements involving virtual assets. “As these arrangements could amount to unauthorised collective investment schemes and may be highly risky, their investors have no or very limited protection under the SFO and may lose all their investments. In addition, the public should be cautious and sceptical about ‘too-good-to-be-true’ investment opportunities, and stay vigilant when making investment decisions,” the regulator stated.

With the addition of LENA Network, the number of products listed on the SFC's Suspicious Investment Products Alert List has now reached 52.