Six Arrested Over $1.2 Billion Crypto Scam as Fun Coffee GCM Projects Promises High Returns

Hong Kong police have arrested six individuals in connection with a cryptocurrency investment scam known as Fun Coffee GCM Projects, which has resulted in estimated losses of HK$94 million.

The suspects, aged between 51 and 64, were apprehended during a joint operation with Macau authorities from August 1 to 3. Those arrested include company directors, shareholders, and key members responsible for promoting the project and recruiting investors.

The syndicate targeted citizens in Hong Kong and Macau, as well as mainland China, South Korea, and Singapore, promising unusually high returns of up to 295 percent through a three-tiered return structure. Investors were instructed to transfer cryptocurrency to specified wallet addresses provided by the platform's customer service staff.

According to authorities, the company claimed it invested in coffee operations using cryptocurrency, but actually used offers, bonuses, and prizes to entice clients to purchase specific cryptocurrencies that offered high returns. The syndicate promoted the scheme through investment seminars, social gatherings, and other events, encouraging participants to recruit friends and relatives in return for additional rewards.