Hong Kong Crypto Scam Leaves Over 1,000 Victims with $13 Million in Losses
A massive cryptocurrency scam has left over 1,000 victims in Hong Kong facing losses exceeding HK$100 million. The 'Fun Coffee' investment scheme promised annual returns of up to 222 percent through investments in coffee technology and artificial intelligence.
The operation initially disguised itself as a legitimate coffee business, with fraudsters even organizing large-scale social and sporting events across the territory to cultivate a wholesome image.
Victims were then persuaded to deposit funds into a cryptocurrency platform, where they were promised exceptionally high returns. The scheme's multi-level marketing structure allowed investors to become 'agents' by recruiting new members and earning commission, fuelling its rapid expansion.
Lawmaker Johnny Ng has called on the government to work with global counterparts to freeze illicit funds linked to the scam. He also proposed refining existing mechanisms to allow regulators or law enforcement agencies to freeze assets immediately upon detecting suspicious activities.