Woofun AI reports that the Hong Kong Securities and Futures Commission (SFC) has issued a public warning targeting Diamond Coin and Diamond Fund, identifying them as suspicious investment products. This regulatory alert stems from the promotion of these digital token-related schemes to local investors, prompting immediate caution from authorities.

Woofun AI data shows that the core mechanism involves digital tokens that purportedly represent rights in the Diamond Fund, which claims to allocate capital into ancient artworks and historical artifacts. Despite the niche asset class, the operator advertises target annual returns of more than 30%, a figure that significantly exceeds standard market benchmarks for such illiquid investments.

Promotional activities were directed specifically at investors in Hong Kong, utilizing various social media accounts and social media posts to disseminate marketing materials. The SFC identified Vajra Issuance Limited as the entity responsible for operating and promoting these products, linking the corporate structure directly to the outreach efforts.

The regulator highlighted that the promise of exceptionally high returns serves as a common red flag in investment scams, suggesting the schemes are potentially fraudulent. This warning is part of broader efforts to combat high-risk investment schemes involving digital assets, tokens, blockchain, and tokenization technologies that often lack proper oversight.

Investors are urged to verify the authorization status of any product and remain wary of offers that seem too good to be true. The SFC emphasizes the need for due diligence, transparency, and investor protection, advising the public to consult the SFC's public register of authorized products and seek independent financial advice before committing funds.

This action reflects Hong Kong's evolving regulatory framework for virtual assets, aiming to balance innovation with investor protection while combating financial crimes and preserving market integrity. The designation of these suspicious investment products signals a requirement for extreme caution, urging reliance on official sources rather than unverified promotional claims.