Hong Kong police say they have received 255 reports tied to the alleged Fun Coffee GCM cryptocurrency investment scam, with total reported losses climbing to about HK$104 million. The case centers on a platform that investigators say promoted high-yield USDT investment plans before withdrawals stopped and the app went offline in July 2026.
The probe is still widening. Six people have been arrested in Hong Kong, while Macau police detained two additional suspects in a related investigation. Authorities are continuing to contact victims and people connected to Fun Coffee promotional events as they work to identify the full scale of the operation.
How the alleged scheme was presented
According to investigators, Fun Coffee GCM described itself as a Vietnam-based business involved in projects such as multifunction coffee equipment, coffee gene research, agricultural machinery and other technology-related ventures. Investors were told their money would support those businesses, with deposits made mainly in USDT.
Police said the platform offered several investment packages with different lock-up periods and advertised returns that rose with larger deposits and longer commitments. The promised annual returns ranged from about 197% to 278%. In one example cited by investigators, a deposit of roughly 10,800 USDT for 10 days was said to generate about 680 USDT in profit, or around HK$5,300, implying an annualized return near 230%.
Recruitment tactics and collapse
Authorities say the operation used more than headline returns to attract money. It also offered deposit bonuses, referral rewards and daily check-in incentives, creating pressure for existing participants to bring in new investors and keep funds on the platform.
Reports indicate the scheme spread through seminars, banquets, social gatherings, marathons and other promotional activities in Hong Kong. Participants were instructed to download the Fun Coffee app, register an account, transfer cryptocurrency to designated wallets and then select an investment package inside the app.
Investigators said some early users were able to withdraw small amounts, which may have lowered suspicion and encouraged bigger deposits. That changed in July 2026, when withdrawals reportedly stopped. The app ceased operating on July 20, and customer service also became unavailable.
Victims, timeline and regulatory warning
Police said complaints began arriving in July 2026, although some investors reported joining the program as early as July 2025. The largest identified loss so far involves a 51-year-old victim who reportedly lost HK$9.63 million.
Fun Coffee had promoted itself as a major coffee investment company in Phu Quoc, Vietnam, claiming more than $1 billion in capital. It entered Hong Kong near the end of 2025, opened offices and stores, and marketed through printed materials and in-person events.
Before the collapse, regulatory concerns had already surfaced. The Hong Kong Securities and Futures Commission added Fun Coffee to a list of suspicious investment products in July 2026. Authorities said withdrawals stopped after that warning and company offices were later vacated.
What happens next
The investigation remains active in both Hong Kong and Macau. Police said they are continuing to reach out to victims and to people linked to Fun Coffee events as more reports come in and the alleged network is mapped out.
The case comes amid broader warnings about digital-asset fraud in Hong Kong, where regulators have been tightening oversight of crypto-related scams. For now, the confirmed next step is continued victim identification and follow-up by investigators as they assess whether losses rise further.
Source: crypto.news