The Fun Coffee case refers to an investigation into a cryptocurrency-backed investment scheme operating across Singapore, Hong Kong, Macau, and Vietnam.
Key Overview
1. The Scheme's Premise
Company Profile: Originating from Phu Quoc, Vietnam, Fun Coffee promoted itself as a lifestyle brand blending automated coffee technology, wellness, and digital innovation. It ran physical locations, including a storefront at 202 Jalan Besar in Singapore featuring automated coffee vending machines.
Investment Model: Users downloaded the "Fun Coffee" app and transferred Tether (USDT), a US dollar–pegged cryptocurrency, to subscribe to investment plans.
Unrealistic Returns: The platform promised annual returns ranging from 197% to 278% alongside commissions for recruiting new investors, operating as a classic pyramid/Ponzi structure.
2. Collapse & Losses
App Blackout: On July 20, the app went offline without notice, locking users out of their accounts and preventing withdrawals.
Regional Impact: Over HK$100 million (~S$16.3 million) was lost by over 200 investors in Hong Kong and Macau alone. In Singapore, multiple victims reported substantial losses, including one PR who lost $400,000.
3. Enforcement & Legal Actions
Singapore Enforcement: The Singapore Police Force (SPF) launched an investigation and arrested a 49-year-old woman for actively promoting the scheme and recruiting investors under the Multi-Level Marketing and Pyramid Selling (Prohibition) Act.
Regional Arrests: Authorities in Hong Kong and Macau arrested at least eight individuals linked to the platform.
Warning from Law Enforcement:
SPF advises the public to cease all payments and transfers to the scheme. Red flags highlighted by authorities include promises of unrealistically high returns, referral-only commission structures, and requests to transfer funds/crypto via private QR codes or unregistered personal accounts.