Big gains lured crypto scam victims

Apparent victims of a HK$107.5 million ($13.71 million) cryptocurrency investment scam linked to the "Fun Coffee" platform said on Wednesday they were lured by promises of exceptionally high returns and recommendations from trusted friends, with one victim claiming to have lost nearly HK$10 million.

More than 10 probable victims from Hong Kong met the press a day after law enforcement authorities in the Hong Kong and Macao special administrative regions announced the arrest of eight suspects in a joint operation targeting the alleged fraud involving the purported Vietnam-based enterprise.

Since July, investigators have received 264 reports in the two cities involving estimated losses totaling HK$107.5 million, according to the Hong Kong Police Force. The victims, aged 32 to 83, reported individual losses ranging from HK$3,000 to about HK$9.6 million.

The platform entered the Hong Kong market in late 2025, promoting investment in coffee-related ventures through cryptocurrency. It claimed to have developed advanced coffee brewing equipment, coffee gene optimization technology, and intelligent irrigation and fertilization systems.

It also promised returns of up to 278 percent, claiming that larger investments and longer deposit periods would generate higher profits.

The scheme collapsed in late July, the same month the Securities and Futures Commission of Hong Kong placed the "Fun Coffee GCM Project" on its alert list of suspicious investment products.

One victim said the organizers did not initially present the program as an investment scheme. Instead, participants were invited to join sports activities and produce short videos, with payments of several hundred Hong Kong dollars for each video. Team leaders who recruited 10 members were promised bonuses worth several thousand Hong Kong dollars.

The group later organized meet-ups and a marathon before introducing so-called investment tasks that encouraged participants to deposit money directly.

"Some large-scale tasks required more money, so I pooled funds with friends to participate," she said.

She said the team she joined had more than 700 members, built through a recruitment model in which each newcomer was encouraged to bring in 10 friends. About 50 members invested in the scheme, with combined losses expected to exceed HK$10 million.

Another victim, who said she lost HK$900,000, said the limited availability of the investment tasks made them appear more attractive.

"The tasks were offered in limited numbers, so once they were sold out, you had to wait for the next round. The activities were also fresh, varied and enjoyable," she said.

Accompanying the victims at the news conference, Hong Kong lawmaker Johnny Ng Kit-chong said the case could ultimately involve more than 1,000 victims.

Ng urged the Hong Kong SAR government to strengthen its anti-fraud mechanisms by allowing authorities to freeze a company's funds and crypto assets as soon as regulators identify suspicious transactions or signs of fraud, saying such measures could improve the chances of recovering victims' losses.

He said his office is using technology to trace digital wallets and assist law enforcement in tracking assets linked to the case.

Ng also urged residents to remain vigilant against schemes promising unusually high returns or promoting "task-based investments", saying investors should carefully assess such offers and avoid making decisions based on unrealistic profit claims.

To protect their privacy, the identities of the alleged victims have been withheld.