A cryptocurrency investment scheme operating under the name Fun Coffee has allegedly defrauded hundreds of investors in Hong Kong and Macao, with reported losses exceeding HK$107.5 million (around $13.7 million). Authorities have arrested eight suspects in a joint cross-border operation as investigations continue into the alleged fraud.
According to Hong Kong Police, at least 264 complaints have been filed since July, with victims aged between 32 and 83 years. Individual losses range from HK$3,000 to nearly HK$9.6 million, indicating the widespread impact of the scam.
The platform entered Hong Kong in late 2025, presenting itself as a cryptocurrency-based investment linked to coffee technology and agricultural innovation. It claimed to be developing advanced coffee equipment and smart farming solutions while offering investors returns of up to 278%, with higher profits promised for larger and longer-term investments.
Several victims said they were introduced to the platform by friends and trusted acquaintances rather than through conventional investment channels. Initially, participants were encouraged to join recreational activities, create promotional videos and complete simple tasks for small payments. As confidence grew, they were persuaded to invest larger amounts in exclusive “task-based” opportunities that appeared to offer lucrative returns.
One investor reportedly lost nearly HK$10 million, while another said she invested HK$900,000, believing the limited availability of investment opportunities made them more valuable. Victims also claimed the platform relied heavily on a referral model, encouraging members to recruit others before introducing larger investment schemes.
The operation came crashing down in late July after Hong Kong’s securities regulator placed the Fun Coffee GCM Project on its alert list of suspicious investment products. Authorities suspect the platform used unrealistic profit promises and a network-based recruitment strategy to attract investors before the scheme collapsed.
Hong Kong lawmaker Johnny Ng Kit-chong, who has been assisting affected investors, believes the total number of victims could exceed 1,000. He has called for stronger anti-fraud measures, including the immediate freezing of company funds and cryptocurrency assets when regulators detect suspicious financial activity. His office is also working with investigators to trace digital wallets linked to the alleged scam.
Officials have urged the public to exercise caution when approached with investment opportunities promising exceptionally high returns or requiring participants to recruit others. They also advised investors to verify the legitimacy of cryptocurrency platforms before committing funds.
