Hong Kong police have acknowledged that losses from the collapse of the Fun Coffee cryptocurrency scheme are likely higher than initially reported, with the updated figure reaching HK$104 million (approximately $13 million) in official statements and local media reports. Combined with Macao's separate tally, the cross-border fraud has now drawn hundreds of complaints across both jurisdictions.

The revised total emerged one day after Hong Kong police conducted coordinated raids with authorities in neighboring cities, including Macao. Across operations in Kowloon Bay, Tsim Sha Tsui, Mong Kok, and Tsuen Wan, authorities seized approximately HK$147,000 in cash, 16 bank cards, six mobile phones, and roughly HK$610,000 in suspected proceeds.

More Victims Report Losses

As of August 4, Hong Kong police had recorded losses of nearly HK$94 million across 225 complaints. By late Wednesday local time, an additional 30 reports brought the total to 255 complaints, with losses climbing to HK$104 million.

Macao's Judiciary Police have been conducting a parallel investigation. Reports from the city indicate 264 claims filed so far, with projected losses exceeding HK$107.5 million (approximately $13.71 million). Together, the two jurisdictions account for more than HK$211 million in reported or projected losses, making Fun Coffee one of the largest cryptocurrency-related fraud cases to surface in the region in recent years.

Between August 1 and 3, Hong Kong police arrested six individuals — one man and five women — on suspicion of conspiracy to defraud. Macao authorities separately detained two women on aggravated fraud charges. According to local reports, the Hong Kong detainees were released on bail as of Wednesday, August 5. The arrested individuals ranged in age from 51 to 64, while the victim demographic spans from 32 to 83 years old, including retirees who lost savings.

Ponzi Scheme Structure Confirmed

Investigators have determined that Fun Coffee operated as a Ponzi scheme, using cash inflows from new investors to pay earlier participants. The scheme collapsed when the platform's app ceased functioning and withdrawal processing was halted on July 20, as reported by Cryptopolitan.

Fun Coffee marketed itself as a Vietnam-based coffee enterprise claiming $1 billion in assets, over 5,000 employees, and a headquarters on Phu Quoc island. The operation combined technical jargon about coffee-gene technology and brewing machine research with a cryptocurrency investment application.

Investors were enticed with promised annual returns ranging from 197% to 278%, depending on whether they enrolled in the "start-up," "growth," or "voyage" investment tier. Such figures far exceed the returns associated with any regulated investment product and are consistent with the elevated yields that securities regulators globally identify as hallmarks of fraudulent schemes. Referral bonuses and daily check-in rewards were also offered to incentivize continued participation.

Unofficial Loss Figures Far Exceed Official Tallies

The loss estimates from authorities in Macao and Hong Kong represent only a portion of the unofficial figures circulating. Legislator Johnny Ng Kit-chong, who accompanied a group of victims after reporting roughly 50 in-person appeals within a single week, cautioned that more than 1,000 people were likely affected. The gap between the official complaint count and Ng's estimate suggests that many victims have yet to come forward, a pattern commonly observed in investment fraud cases where stigma or uncertainty about reporting channels delays disclosure. Ng has also urged the government to grant agencies the authority to freeze platforms' crypto assets and funds when fraud is suspected, which he argues would improve victims' chances of recovering losses.

Regulators Had Warned Before the Collapse

The platform's collapse followed earlier regulatory warnings. Hong Kong's Securities and Futures Commission added the "Fun Coffee GCM Project" to its list of suspicious investment products on July 13, warning that participants risked losing their entire principal.

In May 2026, Vietnamese state television reported that the country's Ministry of Public Security had identified signs of a Ponzi scheme, according to The Standard and Cryptopolitan's earlier coverage.

Police noted that the case reflects a broader trend. In 2025, approximately one-third of Hong Kong's 5,135 online investment fraud cases involved virtual assets. Online investment scams cost victims more than HK$3.58 billion that year, representing a 58.4% year-on-year increase and the highest figure among all fraud categories. The surge comes as Hong Kong continues to develop its virtual asset regulatory framework, including a licensing regime for virtual asset service providers, though schemes operating from outside the jurisdiction remain difficult for local regulators to interdict before investor losses occur.

Investigators continue to examine seized devices and contact additional victims, and have stated they will maintain coordination with Macao and overseas agencies to trace the funds.