Hong Kong police have received 255 reports linked to the alleged Fun Coffee cryptocurrency investment scam, pushing total reported losses to about HK$104 million as investigators continue making arrests and expanding the probe.
Summary
- Hong Kong police have received 255 reports linked to the Fun Coffee crypto investment scam with losses reaching HK$104 million.
- Authorities say the platform promised annual returns of up to 278% through USDT based investment plans before withdrawals stopped.
- Six people have been arrested in Hong Kong while Macau police detained two suspects in a related investigation.
- Police are contacting victims and people linked to Fun Coffee promotional events as the investigation continues.
- The case follows a series of crypto fraud warnings as Hong Kong regulators tighten oversight of digital asset scams.
According to Hong Kong 01, Hong Kong police updated the case on Aug. 5, saying the number of reports had increased by 30 since the previous briefing while reported losses rose from HK$94 million to about HK$104 million.
Authorities said six people arrested in Hong Kong have been released on bail pending further investigation, while Macau judicial police separately arrested two women in connection with nine cases involving losses of about MOP3.6 million.
Investigators are also reviewing the involvement of people connected with promotional activities for the project. Police said they will contact victims and relevant individuals, including entertainers who hosted company events, as they work to identify the organizers of the alleged fraud and determine each person’s role.
Fun Coffee promised returns of up to 278%
Police said reports began arriving in July 2026 from investors who claimed they had joined an investment program known as “Fun Coffee GCM,” with some saying they had entered the scheme as early as July 2025.
According to investigators, the company presented itself as a Vietnam-based business focused on projects including multifunction coffee equipment, coffee gene research, agricultural machinery and other technology-related ventures. Investors were instructed to fund the plans using cryptocurrencies, primarily Tether’s USDT stablecoin.
Authorities said the platform divided investments into several plans carrying different deposit periods and promised returns that increased with larger deposits and longer lock-up periods.
Police analysis found the advertised annual returns ranged from about 197% to 278%.
One investment package cited by investigators required users to deposit about 10,800 USDT, worth roughly HK$84,000, for 10 days in exchange for about 680 USDT in profit, equivalent to around HK$5,300. Police calculated the advertised annualized return at approximately 230%.
Besides investment products, the application offered deposit bonuses, referral rewards and daily check-in incentives that encouraged users to keep adding funds and invite relatives or friends to join the platform.
Hong Kong police say withdrawals stopped in July
According to police, the platform expanded its reach by organizing investment seminars, social gatherings and promotional events where participants were encouraged to recruit new members in return for additional rewards.
People who agreed to participate were instructed to download the Fun Coffee mobile application, register an account and transfer cryptocurrency to designated wallet addresses before selecting an investment package inside the app.
Investigators said many participants were drawn in by the promised returns and recommendations from acquaintances. Some early investors were reportedly able to withdraw small amounts, which police believe reduced suspicion and encouraged larger deposits.
The alleged scheme unraveled on July 20, 2026, when the Fun Coffee application suddenly stopped operating. Investors were no longer able to withdraw either their deposits or the returns displayed on the platform. Customer service channels stopped responding, prompting victims to file complaints with police.
Hong Kong 01 reported that the largest individual loss identified so far involved a 51-year-old victim who allegedly lost HK$9.63 million.
Scam expanded through events before regulators intervened
Hong Kong police said Fun Coffee promoted itself as a major coffee investment company operating in Phu Quoc, Vietnam, claiming more than $1 billion in capital.
The business entered Hong Kong toward the end of 2025, promoting its brand through marathons, banquets, social gatherings and printed marketing materials while opening registered offices and retail locations in the city. According to police, investors were told their money would support high-tech coffee equipment, gene optimization technology and agricultural equipment.
Authorities allege the investment operation relied on cryptocurrency deposits while using a multi-level commission structure that rewarded participants for bringing in new investors.
Regulatory concerns surfaced before the platform collapsed. In July 2026, the Hong Kong Securities and Futures Commission added Fun Coffee to its list of suspicious investment products. Later that month, the application’s operations ceased, withdrawals became impossible, customer support went offline and its offices and stores were vacated, according to information released by authorities.
Police said they are continuing to identify additional victims as more reports are submitted.
Hong Kong steps up action against crypto fraud
The latest figures come as Hong Kong authorities continue responding to several forms of cryptocurrency-related fraud.
Last week, police disclosed that a 50-year-old insurance professional lost more than HK$26 million after an online acquaintance convinced her to invest through a fraudulent cryptocurrency platform.
During the week ending July 30, authorities recorded 25 romance-related cryptocurrency investment fraud cases with combined losses approaching HK$70 million.
Police have said such operations often build trust through social media or messaging platforms before directing victims to fake investment websites that display fabricated profits and sometimes allow small withdrawals before blocking larger redemption requests.
Financial regulators have also increased warnings against online scams targeting digital asset users. In July, Hong Kong Interbank Clearing Limited warned that counterfeit websites were impersonating its Faster Payment System services to collect Hong Kong identity card details, banking information and virtual wallet transactions under the guise of security verification and cash reward programs.
Separately, the Securities and Futures Commission recently required licensed virtual asset trading platforms and online brokers to replace SMS-based authentication with phishing-resistant login methods over the next 12 months. The regulator has also continued adding suspected unlicensed crypto businesses to its alert list while urging investors to verify platforms before transferring funds or sharing personal information.
