Hong Kong SFC Flags “Yieldnodes” Crypto Scheme in Investor Alert

Yieldnodes.com is promoted online for pool-based cryptocurrency staking investment, but Hong Kong's regulator flagged it as illegal and potentially risky with no investor safeguards.

Key Insights

  • Hong Kong SFC warns public about suspected illegal crypto scheme Yieldnodes.com
  • Operated by Exceptional Media, Yieldnodes promotes high-risk virtual asset staking arrangements
  • Investors report withdrawal problems; SFC says such offerings have no protections

HONG KONG (MarketsXplora) – Hong Kong’s securities regulator warned the public on Wednesday about suspected unauthorized cryptocurrency investment product “Yieldnodes.com masternode pool”, operated by Exceptional Media Limited.

In a statement, the Securities and Futures Commission (SFC) said Yieldnodes promotes a pooling scheme for crypto staking, a form of digital asset investment, and its information is accessible to Hong Kong investors via a website and social media pages.

The SFC said Yieldnodes is not approved to be offered to the public in Hong Kong and likely breached local securities laws. It added the scheme was put on its list of suspicious investment products after problems with investor withdrawals were reported.

“The SFC wishes to warn investors of “earnings” or “staking” arrangements relating to 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,” it said.

In crypto staking, investors contribute tokens to support a blockchain network and often earn rewards analogous to interest. Unregulated schemes are prone to losses from hacking, fraud or operational issues.

The SFC reminded investors they have no safeguards under Hong Kong rules when putting money into unauthorized or fraudulent crypto investment programs, often promoted online.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, Samson captivates readers with captivating storytelling and delivers insightful market analysis. He is a trailblazer in the finance industry, empowering individuals with knowledge and shaping the narrative of money. Get ready to be inspired by his literary prowess and entrepreneurial leadership.

Leave a Reply