Reported losses linked to the alleged Fun Coffee cryptocurrency investment scam have climbed to approximately HK$104 million as Hong Kong police continue expanding their investigation.
Authorities said they had received 255 complaints connected to the platform by Aug. 5, representing 30 additional reports since the previous update. Six people have been arrested in Hong Kong, while Macau police have detained two women in a related investigation.
Police allege that Fun Coffee attracted investors with USDT-based investment plans promising annualized returns of up to 278% before the platform stopped processing withdrawals in July 2026.
The allegations remain under investigation, and the arrested individuals have not been found guilty.
Fun Coffee Scam Reports Increase to 255
Hong Kong police said the number of reports linked to Fun Coffee had increased from 225 to 255.
Combined reported losses also rose from approximately HK$94 million to HK$104 million.
The latest figures suggest that more victims are coming forward as investigators contact people connected to the platform and review promotional events held across Hong Kong.
Authorities are working to identify the people who organized and operated the alleged scheme. They are also examining the involvement of individuals who promoted or appeared at Fun Coffee events.
This includes entertainers and event hosts, although participating in a promotional event does not automatically establish involvement in criminal activity.
Police will need to determine what each person knew and what role, if any, they played.
Six People Arrested in Hong Kong
Hong Kong authorities have arrested six people in connection with the investigation.
The suspects have been released on bail while police continue gathering evidence.
Being arrested or questioned does not mean a person has been convicted. Prosecutors would still need sufficient evidence before bringing formal charges, and any accused person would remain presumed innocent unless proven guilty.
Macau judicial police have separately arrested two women in connection with nine cases involving reported losses of approximately MOP3.6 million.
The investigations indicate that the alleged operation may have attracted users outside Hong Kong.
Fun Coffee Allegedly Promised Returns of Up to 278%
Police said Fun Coffee promoted several cryptocurrency investment plans with advertised annual returns ranging from approximately 197% to 278%.
Investors were allegedly instructed to deposit funds using cryptocurrency, particularly Tether’s USDT stablecoin.
The platform offered different investment packages based on deposit size and lock-up period. Larger deposits and longer commitments reportedly produced higher displayed returns.
One package highlighted by investigators required a deposit of approximately 10,800 USDT, worth around HK$84,000.
The plan promised roughly 680 USDT in profit after only 10 days, equivalent to approximately HK$5,300.
Police calculated that the advertised return represented an annualized rate of about 230%.
Such unusually high and predictable returns are a major warning sign, especially when the company does not clearly explain how the profits are generated.
Company Presented Itself as a Vietnam-Based Coffee Business
Fun Coffee reportedly described itself as a Vietnam-based company involved in several technology and agriculture projects.
Its promotional materials referred to businesses such as:
- Multifunction coffee equipment
- Coffee gene research
- Agricultural machinery
- Technology-based farming projects
- Coffee retail and production
The company reportedly claimed it operated in Phu Quoc, Vietnam, and had access to more than $1 billion in capital.
Police allege that these business claims were used to make the investment plans appear legitimate.
Investors were told their cryptocurrency deposits would support the company’s coffee and technology operations.
Authorities are now examining whether the promoted business activities were genuine and whether investor funds were actually used for their stated purpose.
Users Were Asked to Deposit USDT Through an App
People who joined the program were instructed to download the Fun Coffee mobile application and register an account.
They were then directed to transfer cryptocurrency to wallet addresses provided by the platform.
After depositing USDT, users could select an investment package inside the application.
The app reportedly displayed expected profits and account balances, creating the appearance that the investments were generating returns.
However, figures displayed on an investment platform do not prove that real profits exist.
Fraudulent platforms often show fabricated account growth while the deposited money is controlled by the operators.
Small Early Withdrawals May Have Built Trust
Police believe some investors were initially allowed to withdraw small amounts of money.
This tactic may have reduced suspicion and encouraged users to deposit larger sums.
Allowing limited withdrawals is common in certain investment scams because it makes the platform appear functional and trustworthy.
Victims may then reinvest their supposed profits or encourage relatives and friends to join.
The ability to make one successful withdrawal does not confirm that an investment platform is legitimate.
Users should still verify licensing, company ownership, business operations and the source of advertised returns before committing additional funds.
Referral Rewards Encouraged Recruitment
Fun Coffee allegedly offered bonuses to users who deposited more funds or recruited new participants.
The platform reportedly used:
- Referral commissions
- Deposit bonuses
- Daily check-in rewards
- Higher returns for larger investments
- Incentives for inviting friends and family
Police said the project also used a multi-level commission structure.
Under this type of arrangement, participants may earn rewards when people they recruit invest money or bring in additional users.
Referral programs are not always illegal. However, they become concerning when returns depend heavily on new deposits rather than income from a genuine underlying business.
Promotional Events Expanded the Scheme
Fun Coffee reportedly promoted itself through seminars, banquets, marathons and other social events.
The company also opened registered offices and retail locations in Hong Kong after entering the market toward the end of 2025.
Printed marketing materials and in-person gatherings may have helped the project appear more established.
Potential investors were encouraged to attend events, meet promoters and learn about the company’s investment packages.
Police allege that these activities were used to expand the platform’s reach and encourage participants to recruit people within their own social circles.
Recommendations from friends, relatives or colleagues can make fraudulent investments more convincing because victims trust the person introducing the opportunity.
Withdrawals Stopped on July 20
The alleged scheme began to collapse on July 20, 2026, when the Fun Coffee application suddenly stopped operating properly.
Users were reportedly unable to withdraw either their original deposits or the profits displayed in their accounts.
Customer support channels also stopped responding.
The company’s offices and retail locations were later found to be empty, according to information cited by authorities.
The sudden shutdown prompted investors to report the matter to police.
The largest individual loss identified at the time involved a 51-year-old victim who allegedly lost approximately HK$9.63 million.
Some Victims Joined as Early as July 2025
Police said complaints began arriving in July 2026, although some victims reported joining the investment program as early as July 2025.
This suggests that the platform may have operated for about a year before withdrawals stopped.
Longer-running scams can be especially damaging because victims may gradually increase their investment after seeing apparently successful account results.
Some participants may also recruit people close to them, increasing both the financial losses and the personal consequences when the platform fails.
Investigators are continuing to search for additional victims and trace cryptocurrency transfers connected to the project.
Hong Kong SFC Had Issued a Warning
Regulatory concerns appeared before the platform shut down.
In July 2026, the Hong Kong Securities and Futures Commission added Fun Coffee to its list of suspicious investment products.
Such warnings are intended to alert the public that a platform may be offering financial services without proper authorization or may display characteristics associated with fraud.
Investors should check regulatory warning lists before transferring money to unfamiliar companies.
However, warning lists are not always seen in time. Fraudulent platforms can also change names, websites, mobile applications and wallet addresses to continue operating.
Police Are Examining Promoters and Event Participants
Investigators are reviewing the roles of people connected to Fun Coffee’s promotional activities.
This may include organizers, recruiters, sales representatives, event hosts and public figures who appeared at company gatherings.
Police will need to determine whether individuals simply provided promotional services or whether they knowingly helped attract investors to an allegedly fraudulent operation.
Public association with a company does not by itself prove criminal involvement.
However, paid promoters may face greater scrutiny when they make claims about guaranteed profits, financial safety or regulatory approval without verifying those statements.
Cryptocurrency Transfers May Help Investigators
Although cryptocurrency transactions can move across borders quickly, public blockchain records may help authorities trace some of the funds.
USDT transactions recorded on supported blockchains can often be followed from one wallet address to another.
Investigators may analyze whether deposited funds were moved to:
- Centralized exchanges
- Personal wallets
- Cross-chain bridges
- Decentralized exchanges
- Payment services
- Other suspected scam addresses
If funds reach regulated exchanges, police may seek account information or request that suspicious assets be frozen.
Recovery is not guaranteed, especially if criminals move the assets through multiple wallets or convert them into other cryptocurrencies.
Hong Kong Faces More Crypto Investment Scams
The Fun Coffee case comes as Hong Kong authorities respond to several other cryptocurrency-related fraud cases.
Police recently reported that a 50-year-old insurance professional lost more than HK$26 million after an online acquaintance encouraged her to use a fraudulent crypto investment platform.
Authorities also recorded 25 romance-related cryptocurrency investment fraud cases during the week ending July 30.
Combined losses from those cases approached HK$70 million.
Such scams often begin through social media, dating platforms or messaging applications.
Fraudsters spend time building trust before introducing an investment opportunity and directing the victim to a fake website or application.
Fake Platforms Often Display Fabricated Profits
Fraudulent investment applications may appear professional and show steadily increasing balances.
Victims may believe they are earning substantial returns when the displayed figures are controlled entirely by the platform operators.
When users attempt to withdraw larger sums, the platform may demand additional payments described as:
- Taxes
- Security deposits
- Verification fees
- Account-unlocking charges
- Liquidity fees
- Regulatory payments
Paying these charges usually leads to further losses rather than the release of funds.
Legitimate investment platforms generally do not require users to send additional cryptocurrency to unlock their own balance.
Regulators Strengthen Digital Asset Oversight
Hong Kong regulators have increased efforts to protect investors and digital asset users.
The Securities and Futures Commission has continued adding suspected unlicensed crypto companies and suspicious investment products to its alert lists.
Authorities have urged the public to verify whether a trading or investment platform is licensed before sending funds.
Licensed virtual asset platforms and online brokers have also been instructed to replace SMS-based authentication with more phishing-resistant login systems over the next 12 months.
The change is intended to reduce account takeovers caused by stolen passwords, SIM-swapping and fake login pages.
Fake Payment Websites Create Additional Risks
Hong Kong Interbank Clearing Limited also warned in July that scammers were creating counterfeit websites impersonating its Faster Payment System services.
The fake pages allegedly attempted to collect:
- Hong Kong identity card information
- Bank account details
- Virtual wallet information
- Transaction credentials
- Personal verification data
Some websites used fake cash-reward or security-verification offers to convince users to provide sensitive information.
Investors should avoid entering financial or wallet details through links received in unsolicited messages.
Official services should be accessed by typing the verified website address directly or using an official application.
How Investors Can Identify Warning Signs
The Fun Coffee case highlights several common warning signs associated with high-risk or fraudulent investment schemes.
These include:
- Guaranteed or unusually high returns
- Short investment periods with large profits
- Pressure to deposit quickly
- Cryptocurrency-only payments
- Referral-based rewards
- Unclear company ownership
- Unverified claims about overseas operations
- Limited regulatory information
- Small early withdrawals followed by larger restrictions
- Customer service disappearing after deposits increase
No single warning sign proves fraud. However, several appearing together should lead investors to stop and investigate before transferring funds.
What Victims Should Do
People who believe they invested through Fun Coffee should preserve all available evidence.
Useful records may include:
- Wallet addresses
- Transaction hashes
- Bank or exchange statements
- Screenshots of account balances
- Messages with promoters
- Referral information
- Event materials
- Email correspondence
- Mobile application details
- Names and contact information
Victims should contact police and the cryptocurrency exchange used to purchase or transfer USDT.
Rapid reporting may improve the chances of identifying destination wallets or freezing funds that reach regulated platforms.
Victims should also avoid anyone offering guaranteed fund recovery in exchange for an upfront fee, as recovery scams frequently target people who have already lost money.
Investigation Remains Active
Hong Kong police are continuing to contact victims and people linked to the platform’s promotional activities.
Further arrests, charges or asset-freezing actions may occur as investigators examine the flow of funds and determine how the alleged scheme was organized.
The current loss figure of HK$104 million is based on complaints received so far and may rise if additional victims come forward.
The six people arrested in Hong Kong have been released on bail pending further investigation, while the Macau case is being handled separately.
All allegations must still be tested through the legal process.
Fun Coffee Case Highlights the Risks of Unrealistic Returns
The alleged Fun Coffee crypto scam shows how professional branding, physical offices and public events can be used to make a high-risk investment program appear legitimate.
Promises of annual returns approaching 278% should have raised serious concerns, particularly when investments were funded through cryptocurrency and users were rewarded for recruiting others.
The case also demonstrates how allowing small early withdrawals can build enough trust to encourage much larger deposits.
For investors, the most important protection is independent verification.
A polished application, social event or recommendation from a friend should never replace checks on licensing, ownership, financial statements and the actual source of investment returns.
