8 Arrested Over Fraudulent Investment Scheme Fun Coffee – CoffeeTalk

Hong Kong and Macau law enforcement have apprehended eight individuals linked to an investment scam syndicate, known as Fun Coffee, which defrauded over 200 victims out of nearly HK$100 million (approximately US$12.75 million). This organization, which claimed to be a leader in “kinetic coffee philosophy,” began its operations in Hong Kong last year and advertised itself as a coffee investment enterprise stationed in Phu Quoc, Vietnam, with alleged assets exceeding US$1 billion and a personnel count exceeding 5,000.

The website of Fun Coffee advertises a “sports-coffee-value ecosystem,” purporting to provide customized coffee-based nutritional support for runners. Since last month, Hong Kong police recorded 225 complaints from individuals enticed to invest amounts between HK$3,000 and HK$9.63 million, with cumulative losses reaching HK$94 million. Victims, aged between 32 and 83, predominantly included retirees, downloaded the Fun Coffee app, which went offline on July 20, leading to police involvement as stranded investors sought help.

Law enforcement conducted raids across multiple districts in Hong Kong, resulting in the arrest of a man and five women, ages 51 to 64, under conspiracy to defraud charges. These suspects included directors, shareholders, and key promoters within the company. Concurrently, Macau authorities detained two women for aggravated fraud relating to complaints totaling approximately 3.6 million patacas (US$445,676).

Acting Superintendent Lo Yuen-shan noted that Fun Coffee enticed investors with advanced coffee technology and the allure of high returns ranging from 197% to 278%, which led many to underestimate the risks involved. Initial investors who received small returns were particularly encouraged to invest further, despite having limited understanding of the company’s actual operations or background.

Subsequent police searches revealed that Fun Coffee’s offices had ceased all operations. Law enforcement seized cash amounting to HK$147,000, along with various bank cards, mobile phones, and a significant quantity of documents related to the company. An additional HK$610,000 of suspected criminal proceeds has also been frozen.

The organization had further cultivated its image through multiple public events, including a jogging event in December hosted by TVB actor Louis Yuen Siu-cheung. Most victims, many over the age of 50, were drawn in through personal referrals and expressed their hopes of profit through the app.

In response to the fraudulent nature of Fun Coffee, Vietnam’s Ministry of Public Security issued a warning in May, classifying the company as a potential Ponzi scheme. Following this alert, its Vietnamese website went offline. In a parallel move, Hong Kong’s Securities and Futures Commission cautioned against investments in “Fun Coffee GCM,” categorizing it as a suspicious product.

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