Fun Coffee investment scheme collapse triggers regional investigations

Authorities in Singapore, Hong Kong, and Macao are investigating the collapse of Fun Coffee, a lifestyle brand and investment platform that allegedly operated as a cryptocurrency-based Ponzi scheme. The platform promised implausibly high annual returns, reaching up to 277%, and encouraged investors to transfer funds using the stablecoin Tether (USDT).

Following the platform's sudden disappearance on July 20, 2026, investors across the region reported massive financial losses. Total losses are estimated to be approximately 140 million Hong Kong dollars, with individual losses reported to reach as high as 50 million Hong Kong dollars.

In Singapore, a 49-year-old woman has been arrested for her role in promoting the scheme. She is being investigated under the Multi-Level Marketing and Pyramid Selling (Prohibition) Act. Police in Hong Kong and Macao have also detained eight individuals linked to the company. While the scheme claimed to be based in Phu Quoc, Vietnam, and asserted assets exceeding one billion US dollars, investigators are scrutinizing its actual operations and the use of USDT as a primary channel for collecting illicit funds.