Police in Hong Kong and Macao have arrested eight people in connection with a cross-border investment fraud that used the guise of a coffee technology company to attract investors. The operation, known as "Fun Coffee," allegedly defrauded hundreds of individuals, with total reported losses amounting to approximately US$12.4 million.
According to Hong Kong police, the scheme began attracting participants in 2025, soliciting cryptocurrency deposits with the promise of exceptionally high returns, advertised as up to 278% annually. Authorities determined the company generated no real profits and operated as a Ponzi scheme, paying early investors with funds collected from new participants. The Hong Kong Securities and Futures Commission had added the company to its list of suspicious investment products in mid-July.
To appear legitimate, Fun Coffee constructed an elaborate but false narrative. It claimed to be developing "coffee-gene" optimization, advanced brewing equipment, and automated farm systems. The company also announced fabricated plans to expand into mainland China, including the acquisition of a coffee plantation in Yunnan. The scheme collapsed in late July when its mobile app ceased functioning and investors were unable to withdraw their funds.