Hong Kong SFC Issues Warning to Public of Suspicious Cryptocurrencies Investment Product Yieldnodes.com Masternode Pool Operated by Exceptional Media Limited, Products Accessible via Website & Social Media Accounts, Problems of Withdrawals from Investment Product
1st March 2024 | Hong Kong
The Hong Kong Securities & Futures Commission (SFC) has issued a warning to the public of suspicious cryptocurrencies investment product Yieldnodes.com masternode pool operated by Exceptional Media Limited, with the products accessible via website & social media accounts and problems of withdrawals from investment product had been reported. Hong Kong SFC: “The Securities and Futures Commission (SFC) today warned the public of a suspicious investment product named “Yieldnodes.com masternode pool” (Product) and operated by Exceptional Media Limited, involving stake pooling arrangement associated with cryptocurrencies (Note 1). The Product has not been authorised by the SFC for offering to the Hong Kong public and is suspected to have breached the Securities and Futures Ordinance (SFO) (Notes 2 and 3).” See below for more info:
“ Hong Kong SFC Issues Warning to Public of Suspicious Cryptocurrencies Investment Product Yieldnodes.com Masternode Pool Operated by Exceptional Media Limited, Products Accessible via Website & Social Media Accounts, Problems of Withdrawals from Investment Product “
Hong Kong SFC Issues Warning to Public of Suspicious Cryptocurrencies Investment Product Yieldnodes.com Masternode Pool Operated by Exceptional Media Limited, Products Accessible via Website & Social Media Accounts, Problems of Withdrawals from Investment Product
28th February 2024 – The Securities and Futures Commission (SFC) today warned the public of a suspicious investment product named “Yieldnodes.com masternode pool” (Product) and operated by Exceptional Media Limited, involving stake pooling arrangement associated with cryptocurrencies (Note 1).
- The Product has not been authorised by the SFC for offering to the Hong Kong public and is suspected to have breached the Securities and Futures Ordinance (SFO) (Notes 2 and 3).
- The SFC notes that information regarding the Product is accessible to the Hong Kong public via its associated website (https://yieldnodes.com) and various social media accounts managed by its relevant administrators on Facebook (https://www.facebook.com/official.yieldnodes/), Discord (https://discord.gg/nHCT2xcE/), X (https://twitter.com/YieldnodesOffic/), LinkedIn (https://www.linkedin.com/company/yieldnodes-com/) and Instagram (https://www.instagram.com/yieldnodesofficial/). Problems with withdrawal from investments in the Product have been reported.
- The Product and its related information were posted on the SFC’s Suspicious Investment Products Alert List on 28 February 2024.
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 under the SFO and may lose all their investments. Investors should stay vigilant when making investment decisions (Note 4).
The SFC will take all appropriate actions where there is any breach of the law.
Notes:
- Exceptional Media Limited is a Hong Kong-incorporated company and operates at the website of https://yieldnodes.com. A search of the website on Scameter (https://cyberdefender.hk/en-us/scameter/), a one-stop scam and pitfall search engine supported by the Hong Kong Police Force, indicates that high cyber security risks exist.
- The Product displays characteristics of a collective investment scheme (CIS) as defined in section 1 of Part 1 of Schedule 1 to the SFO. It is an offence under section 103 of the SFO for a person to issue, whether in Hong Kong or elsewhere, an advertisement, invitation or document which is or contains an invitation to the Hong Kong public to acquire an interest in or participate in a CIS, unless the SFC has authorised the issue or an exemption applies. In general, CIS must be sold by an intermediary licensed by or registered with the SFC. Unauthorised CIS may generally be sold to professional investors only.
- It is an offence under section 114 of the SFO for a person to carry on, or hold himself out as carrying on, a business in a regulated activity (which will include promoting interests in a CIS) without a licence where required. It is also an offence under section 115 of the SFO for a person to actively market, whether in Hong Kong or from a place outside Hong Kong, to the Hong Kong public any services that the person provides and such services, if provided in Hong Kong, would constitute a regulated activity.
- In its Statement on virtual asset arrangements claiming to offer returns to investors issued on 13 December 2022, the SFC reminded investors of the risks associated with virtual asset arrangements (including “earnings” and “staking” services) and also the persons engaging in these arrangements that they could amount to a CIS.
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