Fun Coffee Ponzi Scheme Collapses: Singapore Woman Loses $400,000 as 200 Investors Lose S$16.3M

A cryptocurrency-based investment scheme called Fun Coffee collapsed in late July after promising investors 197-278% annual returns on coffee-related projects. Over 200 people across Singapore, Hong Kong, and Macau lost nearly S$16.3 million. The Vietnam-based company’s app went offline on July 20, trapping investors’ funds. Singapore police arrested a 49-year-old woman on August 6 for actively recruiting participants into the scheme.

How the scheme worked

Fun Coffee, based in Phu Quoc, Vietnam, claimed assets of over US$1.28 billion and a team of 5,000. The company lured investors through social events, jogging events with television celebrities, and recruitment incentives. Participants downloaded an app and transferred Tether (USDT), a cryptocurrency pegged to the US dollar, into wallet addresses. The scheme promised unrealistically high returns and paid commissions for recruiting others, making it a multi-level marketing operation.

The collapse and arrests

The app went offline on July 20, leaving investors unable to withdraw funds. Hong Kong authorities flagged the scheme as suspicious in late July. Hong Kong and Macau police arrested eight people in a joint operation. Singapore police arrested a 49-year-old woman on August 6 under the Multi-Level Marketing and Pyramid Selling (Prohibition) Act. If convicted, she faces up to five years imprisonment, a fine up to S$200,000, or both.

Singapore victims’ losses

A 48-year-old Singapore permanent resident invested about S$400,000 and received initial returns of about S$10,000, which she reinvested. She introduced family members and friends to the scheme. When the app crashed on July 21, she could not withdraw any funds and was left with S$80 in her bank account. Singapore investors filed multiple police reports after losing access to their funds.

Regional impact and warning signs

In Hong Kong and Macau, 264 claims were registered with per-person losses ranging from HK$3,000 to HK$9.6 million. One victim lost approximately HK$10 million. The scheme entered the Hong Kong market in late 2025 and Singapore sometime in 2025. Victims were lured by high promised returns and trusted friends who promoted the scheme. Hong Kong lawmaker Johnny Ng warned the actual victim count could exceed 1,000.

Final Thoughts

Fun Coffee’s collapse exposes the risks of unregulated cryptocurrency investment schemes targeting retail investors across Asia. Singaporeans lost millions to promises of 197-278% returns. Regulators and law enforcement are now investigating across three jurisdictions.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.