Hong Kong SFC Flags Fun Coffee Scam Amid $127M Investor Losses

Woofun AI reports that the Hong Kong Securities and Futures Commission (SFC) has issued a formal warning regarding Fun Coffee, a crypto-related investment project now accused of operating a suspicious investment scheme that could cause participants to lose their entire principal.

The platform entered the local market in late 2025, promoting a coffee-related investment model that promised returns of up to 222% annually. Users were instructed to download an application, complete platform activities, and deposit funds through virtual assets, often after receiving recommendations from friends or personal contacts. The project claimed ties to Vietnam, advertising large-scale operations with thousands of employees and plans for future expansion.

By the end of July, withdrawals had stopped, and many participants could no longer access their accounts. Online groups with approximately 4,000 members documented combined losses exceeding HK$1 billion, equivalent to about $127 million. Investigations revealed that the company’s listed locations in Hong Kong were empty, despite multiple local entities registered under the Fun Coffee name from late 2025 to early 2026.

Woofun AI data shows that Hong Kong authorities have received 115 reports, which were transferred to the Commercial Crime Bureau’s deception investigation team. This follows earlier alerts from Vietnamese authorities, who cited state media reports in May 2026 identifying possible signs of a Ponzi-style operation. Regulators continue to emphasize the importance of verifying licensed providers to maintain the region’s status as a regulated crypto hub.

The incident echoes the JPEX case, which involved thousands of complaints and billions of Hong Kong dollars in reported losses. These recurring frauds are driving regulators to demand stronger transparency, security practices, and investor education across the sector.