ChainCatcher news, the Hong Kong Securities and Futures Commission has issued a notice warning the public to be cautious of a suspicious virtual asset investment product named "LENA Network." This product involves staking and lending arrangements related to virtual assets and claims to offer high returns to investors.The Securities and Futures Commission has noted that the Hong Kong public can access information about this product and engage with it via the internet. Therefore, the Commission has included this product and its related information in the list of suspicious investment products as of May 13, 2024.

ChainCatcher message, the liquidity protocol Lena Network denied the Rug Pull in its official blog, stating that there are multiple reasons for sending the fundraising funds to OKX, including converting the raised ETH to USDT, as the operation of LENA and the automated market maker (AMM) pool is based on USDT, making this step necessary. Choosing this method instead of on-chain transfers is to avoid high gas fees and transaction slippage. These funds are primarily used for the project's future development, including development costs, marketing, listing fees, and liquidity.The project further explained: "Based on community feedback, we have taken further measures to transfer funds back to the cold wallet to protect the safety of the funds." Lena Network stated that it transferred 100 ETH to OKX after the end of the private placement round, but did not expect the community's reaction to be so strong afterward.Lena Network stated: "Based on community feedback, we originally planned to relinquish ownership of the token contract to prevent any new minting actions and to assure the community of our commitment to decentralization and security. However, we were reminded that the ownership of the contract was not completely relinquished, which is an action taken to further reassure our community. Inaccurate information has spread, and we want to clarify that relinquishing ownership of our token contract does not mean that our project has ended." Lena Network also stated that it would implement a compensation plan for IF0 participants for its "execution error."

ChainCatcher news, according to Cointelegraph, data from Etherscan shows that the recently launched liquidity protocol Lena Network Deployer address transferred 753.11 ETH (worth about 2.9 million USD) to an address associated with the OKX platform at 10 AM today, after which the Candy token dropped. This event occurred just a few hours after Lena Network announced the official relinquishment of the token contract ownership. Its Candy token plummeted over 87% after the protocol Rug, falling from an intraday high of 3.08 USD to 0.38 USD.As of the time of publication, the protocol has not responded to the incident. According to the protocol's announcement, Lena Network raised a total of over 850 ETH (worth 3.2 million USD) for the issuance of its Candy token, which ended on March 3. The Candy token went live earlier today but then sharply declined.