Fears grow that Fun Coffee crypto scam duped over 1,000 as losses mount

A Hong Kong lawmaker has raised concerns that a crypto scam involving a coffee investment venture based in Vietnam might have ensnared over 1,000 victims, as losses accumulate. The warning comes as police reported total losses linked to the scheme, known as Fun Coffee, reaching HK$104 million (US$12.75 million), with 225 complaints filed since last month.

Six individuals, including a man and five women aged between 51 and 64, were arrested on suspicion of conspiracy to defraud but later released on bail. Legislator Johnny Ng Kit-chong disclosed receiving around 50 in-person appeals since last week, implying the number of victims could surpass 1,000. An investor who invested HK$100,000 in Fun Coffee's platform claimed she only received HK$700 to HK$1,000 per three-minute promotional video shoot after splitting the fee with the crew.

When Fun Coffee introduced an app to earn returns from USDT, she invested over HK$100,000. She explained that the company assured her the investment was not for profit but for her to join their team, which eventually consisted of 700 people, with 50 identified as victims, resulting in HK$14 million in losses. Another victim claimed she lost more than HK$2 million after being asked to invest HK$600,000 for a high-end meeting in Singapore, with a promised return of HK$1.4 million in seven months.

A third victim said he invested HK$400,000, borrowed an additional HK$190,000, and ultimately lost HK$7 million due to his team's losses. Ng highlighted the fraudulent scheme's use of unlicensed cryptocurrency exchanges and cash top-ups at over-the-counter shops. He urged affected investors to report their losses promptly and hoped the government could freeze the company's cryptocurrency accounts.

Ng suggested coordinating with Interpol to tackle the cross-border scam and called for increased anti-scam public education. Fun Coffee claims to be a coffee investment enterprise based in Phu Quoc, Vietnam, with assets exceeding US$1 billion and a team of over 5,000. The company's Hong Kong offices have ceased operations, and its Kowloon Bay headquarters recently faced unpaid rent notices.