Hong Kong Warns on Fun Coffee After Losses Top HK$1 Billion

Hong Kong financial authorities have warned investors against Fun Coffee, a project accused of raising funds by luring investors with promises of high returns.

Cryptopolitan reported on July 31 that Hong Kong’s Securities and Futures Commission designated the “Fun Coffee GCM Project” as a suspicious investment product on July 13 and warned that investors could lose all of their money.

Fun Coffee entered Hong Kong late last year and recruited investors by advertising annual returns of up to 222%. Investors were instructed to download a dedicated app, complete various “missions,” and transfer their investment funds in digital assets. Many participants are reported to have joined through referrals from acquaintances.

Withdrawals began to be suspended late last month, and some users were unable to access their accounts. A victims’ group now has about 4,000 members, and the losses it has tallied in connection with Fun Coffee have exceeded HK$1 billion ($127 million).

Hong Kong police have received 115 related cases and transferred the matter to the Commercial Crime Bureau for investigation.

Fun Coffee has also been soliciting investors in South Korea through a Korean-language website and social media accounts.