A 49-year-old woman has been arrested in Singapore in connection with an alleged investment scheme involving Fun Coffee.
The woman was arrested on 6 August as part of an ongoing police investigation.
In a statement on 8 August, the Singapore Police Force said preliminary investigations found that she had actively promoted the Fun Coffee investment scheme and recruited others to join it.
Participants were allegedly promised very high investment returns, along with additional commissions if they brought more people into the scheme.
The problem came when investors wanted their money back.
Police said participants in Singapore subsequently found themselves unable to withdraw their funds through the Fun Coffee app.
Investors Had to Transfer Cryptocurrency Through an App
According to the police, people who wanted to participate had to first install the Fun Coffee app.
They would then transfer Tether, or USDT, into cryptocurrency wallet addresses provided through the app.
USDT is a cryptocurrency known as a stablecoin because it is designed to maintain a value close to the US dollar.
Police said the investment plans promised “unrealistically high returns” and offered additional commissions for recruiting other participants.
The Straits Times had earlier reported that the Fun Coffee app went offline on 20 July.
ST also reported, citing Shin Min Daily News, that a 48-year-old Singapore permanent resident said she had invested around S$400,000 in the scheme and introduced family members and friends to it.
She said she initially received about S$10,000 in returns and reinvested the money.
By late July, however, she was unable to withdraw her funds and made a police report.
Why It Is Being Described as a Ponzi Scheme
A Ponzi scheme generally works by using money collected from newer investors to pay supposed returns to earlier investors, instead of generating those returns through genuine investment profits.
That model needs a continuous supply of new money. Once new investments slow down or too many participants try to withdraw their funds at the same time, the scheme can collapse.
There is also a slight distinction between a Ponzi scheme and a pyramid scheme.
A pyramid scheme usually places greater emphasis on recruiting new participants, with people receiving benefits or commissions when more participants join.
That distinction is relevant here.
While the Fun Coffee case has been described in reports as an alleged Ponzi scheme, Singapore police arrested the woman under the Multi-Level Marketing and Pyramid Selling (Prohibition) Act.
Police said the Fun Coffee plans allegedly included additional commissions for recruiting other participants.
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Hong Kong Authorities Had Already Flagged Fun Coffee
The case extends beyond Singapore.
On 13 July, Hong Kong’s Securities and Futures Commission added “Fun Coffee GCM Projects” to its list of suspicious investment products.
The regulator said the investment arrangements involved projects supposedly linked to the research, development and sale of technology products or agricultural equipment.
Examples included a “cold brew high efficiency extraction system” and a food safety testing and traceability system.
The products had not been authorised by the Hong Kong regulator for offering to the public.
By 5 August, Hong Kong police said they had received 225 complaints linked to Fun Coffee, with reported losses reaching about HK$104 million, or roughly S$17 million.
Authorities in Hong Kong and Macau have arrested eight people in total in connection with investigations into the scheme.
Fun Coffee has presented itself as a coffee investment enterprise based in Phu Quoc, Vietnam.
It claimed on its website to have assets exceeding US$1 billion and a team of more than 5,000 people.
Fun Coffee Also Had a Physical Presence in Singapore
This was not a case where the name existed solely inside an investment app.
ST reported that Fun Coffee entered Singapore sometime in 2025, while checks showed its local firm was incorporated on 3 February 2026 with a registered address at 202 Jalan Besar.
When ST visited the address on 7 August, it found a coffee vending machine at the entrance.
There were handwritten instructions telling customers how to scan a QR code to pay.
The existence of an actual business operation, however, is separate from whether an investment scheme connected to that business is legitimate.
Woman Could Face Up to Five Years’ Jail If Convicted
Under Singapore’s Multi-Level Marketing and Pyramid Selling (Prohibition) Act, it is unlawful to promote or participate in a prohibited multi-level marketing or pyramid selling scheme.
A person convicted of the offence can be fined up to S$200,000, jailed for up to five years, or both.
The court can also impose an additional financial penalty of up to the value of benefits the offender received through the scheme.
Police said members of the public should not make any further payments or transfers to the Fun Coffee scheme, including when approached by people claiming to represent the business or through requests made using its app.
They also advised people to treat requests to send investment money through private PayNow QR codes, personal mobile numbers or overseas accounts as warning signs.
