Hong Kong Securities Regulatory Commission: Beware of suspicious virtual asset-related products called “LENA Network”

Zhitong Finance App learned that on May 13, the Hong Kong Securities Regulatory Commission warned the public to beware of a suspicious investment product called “LENA Network”. The product involves pledging and borrowing arrangements related to virtual assets, and claims to provide investors with high returns. This product has not been approved by the Hong Kong Securities Regulatory Commission for sale to the Hong Kong public.

The Hong Kong Securities Regulatory Commission notes that the Hong Kong public can access information about and access this product through the Internet. As a result, the Hong Kong Securities Regulatory Commission added this product and related information to the Suspicious Investment Product Alert List on May 13, 2024.

Regarding the above situation, the Hong Kong Securities Regulatory Commission would like to caution investors against “pledge” arrangements relating to virtual assets. As these arrangements may be non-accredited collective investment schemes and are highly risky, their investors will receive no or very limited protection under the Securities and Futures Ordinance, and may lose all of their investments. Furthermore, the public should be careful and avoid trusting investment opportunities that are “too good to be true” and be alert when making investment decisions.

The Hong Kong Securities Regulatory Commission stated that it will take appropriate action against any illegal act.