The Fun Coffee investment scheme, which promised high returns from a coffee business based in Phu Quoc Island, Vietnam, has seen the number of reports rise to 286, with total losses of about HK$118 million, police announced on Thursday.
The platform, which operated through a mobile app, allegedly lured investors with annual returns of up to 278 per cent on cryptocurrency investments, with schemes including "Start-up", "Growth" and "Voyage" levels. Investors were encouraged to recruit others through referral bonuses and daily check-in rewards.
Some early investors who successfully withdrew small amounts lowered their guard and increased their investments. The app suddenly stopped operating on July 20, leaving investors unable to withdraw funds or contact customer service.
Police have arrested six people in Hong Kong on suspicion of conspiracy to defraud, including company directors, shareholders and key promoters. Two women were also arrested in Macau. Assets have been frozen and premises searched.
