Blab Crypto
Fun Coffee Alleged Crypto Scam Draws Hong Kong Regulatory Warning and Police Investigation
When a steaming cup of coffee turned into a steaming pot of trouble, Hong Kong’s financial watchdog and police stepped in.
Fun Coffee, a venture that claimed its roots lay in Vietnam’s coffee‑producing islands, launched a flashy campaign in Hong Kong at the end of 2025. The brand positioned itself as a legitimate coffee‑related business while secretly running a cryptocurrency investment scheme that promised annual returns of up to 222 percent. By the end of July 2026, the promised payouts stopped and the operation began to unravel.
The first cracks appeared in early July. Online chat groups across Hong Kong swelled with more than 370 members in a single forum, and several other groups together counted around 4,000 participants. Users reported aggregate losses exceeding HK$1 billion. The scheme required investors to download a mobile app, complete “tasks,” and transfer funds via virtual assets in exchange for the high interest. Once the problems surfaced, many could no longer log into their accounts.
A Hong Kong woman in her 50s discovered that her personal information had been used to register her as a shareholder and director of a local company bearing the Fun Coffee name. She had promoted the app within her neighbourhood network, creating over 100 “downline” accounts, and reported the matter to police, citing concerns that her identity had been misused.
Public records show that three Hong Kong companies registered under the Fun Coffee name were incorporated between late 2025 and early 2026. Reporters who visited the group’s listed Kowloon Bay headquarters and a Mong Kok storefront in late July found the premises vacated, with landlord notices citing rent arrears from the start of the month. Earlier, the firm had presented itself as headquartered on Vietnam’s Phu Quoc island, claiming more than US$1 billion in funds and a workforce of over 5,000, and had compared itself to major coffee chains while announcing plans to list.
Regulatory and law‑enforcement actions intensified during July. On 13 July 2026, Hong Kong’s Securities and Futures Commission (SFC) issued a public warning that the “Fun Coffee GCM project” appeared to be a suspicious investment, cautioning participants that they risked losing their entire principal. The SFC’s alert was added to its Suspicious Investment Products List, which informs the public about unregistered or potentially fraudulent schemes.
Separately, Vietnamese state television reported in May 2026 that the country’s Ministry of Public Security warned the operation bore the hallmarks of a Ponzi scheme. According to the ministry, the scheme’s structure relied on new investors’ funds to pay earlier participants, a characteristic of Ponzi operations.
By late July, Hong Kong Police had received 115 reports related to the case. The matter was forwarded to the Commercial Crime Bureau’s deception investigation team. Police officials said they were reviewing the company’s corporate filings, the identities of individuals listed as directors, and the flow of funds through the app.
The episode followed a burst of publicity by the group in December 2025, including a local running event and leaflet distributions framed as anti‑fraud awareness. Behind the promotional gloss, the core model described by investors relied on high‑yield promises linked to cryptocurrency transfers and app‑based tasks—features that regulators and law‑enforcement agencies have repeatedly flagged as red flags for fraud.
As investigations continue, affected investors urge caution with any scheme that touts extraordinary returns, opaque structures, and pressure to recruit new participants. The SFC has reiterated that it will continue to monitor the situation and advise the public to verify the regulatory status of any investment product before committing funds.
The current status of the Fun Coffee operation remains uncertain. No formal charges have been announced, and the company has not issued a public statement. The SFC and police are still gathering evidence, and the outcome of the investigation will determine whether the scheme will be prosecuted as fraud or a Ponzi scheme under Hong Kong law.
The case highlights the ongoing challenges regulators face in policing cross‑border investment schemes that combine consumer‑facing branding with cryptocurrency‑based financial products. It also underscores the importance of clear regulatory guidance and public awareness in preventing similar incidents in the future.
Fun Coffee, a venture that claimed its roots lay in Vietnam’s coffee‑producing islands, launched a flashy campaign in Hong Kong at the end of 2025. The brand positioned itself as a legitimate coffee‑related business while secretly running a cryptocurrency investment scheme that promised annual returns of up to 222 percent. By the end of July 2026, the promised payouts stopped and the operation began to unravel.
The first cracks appeared in early July. Online chat groups across Hong Kong swelled with more than 370 members in a single forum, and several other groups together counted around 4,000 participants. Users reported aggregate losses exceeding HK$1 billion. The scheme required investors to download a mobile app, complete “tasks,” and transfer funds via virtual assets in exchange for the high interest. Once the problems surfaced, many could no longer log into their accounts.
A Hong Kong woman in her 50s discovered that her personal information had been used to register her as a shareholder and director of a local company bearing the Fun Coffee name. She had promoted the app within her neighbourhood network, creating over 100 “downline” accounts, and reported the matter to police, citing concerns that her identity had been misused.
Public records show that three Hong Kong companies registered under the Fun Coffee name were incorporated between late 2025 and early 2026. Reporters who visited the group’s listed Kowloon Bay headquarters and a Mong Kok storefront in late July found the premises vacated, with landlord notices citing rent arrears from the start of the month. Earlier, the firm had presented itself as headquartered on Vietnam’s Phu Quoc island, claiming more than US$1 billion in funds and a workforce of over 5,000, and had compared itself to major coffee chains while announcing plans to list.
Regulatory and law‑enforcement actions intensified during July. On 13 July 2026, Hong Kong’s Securities and Futures Commission (SFC) issued a public warning that the “Fun Coffee GCM project” appeared to be a suspicious investment, cautioning participants that they risked losing their entire principal. The SFC’s alert was added to its Suspicious Investment Products List, which informs the public about unregistered or potentially fraudulent schemes.
Separately, Vietnamese state television reported in May 2026 that the country’s Ministry of Public Security warned the operation bore the hallmarks of a Ponzi scheme. According to the ministry, the scheme’s structure relied on new investors’ funds to pay earlier participants, a characteristic of Ponzi operations.
By late July, Hong Kong Police had received 115 reports related to the case. The matter was forwarded to the Commercial Crime Bureau’s deception investigation team. Police officials said they were reviewing the company’s corporate filings, the identities of individuals listed as directors, and the flow of funds through the app.
The episode followed a burst of publicity by the group in December 2025, including a local running event and leaflet distributions framed as anti‑fraud awareness. Behind the promotional gloss, the core model described by investors relied on high‑yield promises linked to cryptocurrency transfers and app‑based tasks—features that regulators and law‑enforcement agencies have repeatedly flagged as red flags for fraud.
As investigations continue, affected investors urge caution with any scheme that touts extraordinary returns, opaque structures, and pressure to recruit new participants. The SFC has reiterated that it will continue to monitor the situation and advise the public to verify the regulatory status of any investment product before committing funds.
The current status of the Fun Coffee operation remains uncertain. No formal charges have been announced, and the company has not issued a public statement. The SFC and police are still gathering evidence, and the outcome of the investigation will determine whether the scheme will be prosecuted as fraud or a Ponzi scheme under Hong Kong law.
The case highlights the ongoing challenges regulators face in policing cross‑border investment schemes that combine consumer‑facing branding with cryptocurrency‑based financial products. It also underscores the importance of clear regulatory guidance and public awareness in preventing similar incidents in the future.
