Hong Kong Securities and Futures Commission warns: FoFund, Fo Coin, and Taohuayuan NFT are "suspicious products" and investors need to be careful

The Hong Kong Securities and Futures Commission (SFC) issued an announcement and warning, naming four products, "FoFund Duoduo No. 1", "FoFund Duoduo No. 2", the token "Fo Coin" and "Paradise NFT", saying that they were soliciting investment from the public without being recognized, and reminded investors to be more vigilant.
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(Background supplement: Fraudsters targeted the Mt. Gox theft case with 8.6 billion U.S. dollars in stolen Bitcoin wallets, be careful of the OP_RETURN phishing scam)

Contents of this article

The Securities and Futures Commission of Hong Kong (SFC) issued an announcement warning, naming "FoFund Four products, namely "Duoduo No. 1", "FoFund Duoduo No. 2", token "Fo Coin" and "Paradise NFT", said that they were not recognized but solicited investment from the public, reminding investors to be vigilant.

The common outline of suspicious products

According to the information disclosed on the official website of the China Securities Regulatory Commission, "FoFund Duoduo No. 1" and "FoFund Duoduo No. 2" advertise investment portfolio strategies related to cryptocurrency; "Fo Coin" targets the token market; "Peach Blossom Spring NFT" is covered in art collection. The four target different fields, but they all lack transparency, have no public audits, and do not appear on the SFC’s salable list.

In addition, the China Securities Regulatory Commission also disclosed the specific operating teams and social accounts of these projects, warning investors to be careful and avoid being deceived.

The regulatory pace is accelerating

This move is not an isolated incident. On August 1 On the same day, Hong Kong’s Stablecoin Ordinance will come into effect. The regulations stipulate that stablecoin issuers must apply for a license from the Hong Kong Monetary Authority and comply with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.

In addition, from June 2023, centralized exchanges and virtual asset trading platforms will need to apply to the SFC for Articles 1, 4, 7, and 9. After the new regulations are implemented, distribution and custody services will also be included in the jurisdiction. In other words, unlicensed operations will only become more and more difficult in Hong Kong, and regulatory tightening is imperative.

Three reminders for investment layout

For ordinary investors, SFC’s announcement brings three revelations. First, verify the license: before entering any platform, go to SFC. Website comparison list. Second, see the structure clearly: high returns often come with high risks. If there is a lack of public audits or fund use explanations, you should stop. Third, pay attention to the timing: after the stable currency regulations are launched, the compliance threshold will be raised, and the truly surviving projects will be more transparent and easier to be tracked by supervision.

The innovation story of virtual assets is far from over, but the next chapter must be based on clear and transparent supervision.