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Hong Kong police have arrested six people on suspicion of conspiracy to defraud in connection with the Fun Coffee cryptocurrency investment scam, which has caused total losses of around HK$94 million.
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The five women and one man, aged between 51 and 64, were apprehended during a joint operation with Macau police conducted from August 1 to 3.
Those arrested in Hong Kong include company directors, shareholders, and key members responsible for promoting the project and recruiting investors.
Cross-border syndicate targeted in raids
Macau police have also arrested two women on suspicion of aggravated fraud in nine related cases involving 3.6 million Macanese patacas.
As of August 3, Hong Kong authorities have received 225 reports related to the scheme, with victims aged between 32 and 83, including retirees.
Police said they began receiving reports in July after citizens stated that they had joined the investment scheme, named Fun Coffee GCM Projects, late last year.
Investigations revealed that the company claimed publicly that the project focused on research into high-tech coffee equipment and coffee gene optimization technology. Investors were persuaded to inject funds using cryptocurrency across a three-tiered return structure.
Under the highest tier, investors who deposited 29,800 cryptocurrency Tether (USDT), worth around HK$230,000, for 570 days were promised a profit of 129,093 USDT, worth about HK$1 million, representing an annualized return rate of 278 percent after conversion.
The syndicate promoted the scheme by holding investment seminars, social gatherings, and other events, encouraging participants to recruit friends and relatives in return for additional rewards.
Once targets expressed interest, they were instructed to download a mobile app and complete registration.
Investors then transferred cryptocurrency to specified crypto wallet addresses provided by the platform’s customer service staff to buy different investment packages within the app.
Alarms sounded by financial regulators
The Securities and Futures Commission previously placed the Fun Coffee GCM Projects on its alert list of suspicious investment products on July 13.
According to the exclusive report by East Week, the sister publication of The Standard, the Vietnam-based company claimed it invested in coffee operations using cryptocurrency and suggested it could go public within as little as three years.
However, it actually used offers, bonuses, and prizes to entice clients to purchase specific cryptocurrencies that were advertised as offering returns of up to 295 percent.
Since entering Hong Kong late last year, the company has presented a community-friendly, health-conscious image by organizing large-scale marathons and spending heavily to feature elderly residents in sports and wellness promotional videos.
The group also expanded to mainland China, South Korea, and Singapore, despite warnings from Vietnamese authorities in May that it was suspected of being a Ponzi scheme.
