Woman arrested in Singapore as part of probe into Fun Coffee investment scheme
The 49-year-old woman was arrested on Thursday following investigations into the platform, which is purportedly based in Vietnam.
A cafe operated by Fun Coffee along Jalan Besar. (Photo: Fun Coffee website)
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SINGAPORE: A 49-year-old woman has been arrested in Singapore over her alleged role in promoting an investment scheme linked to the Fun Coffee platform, which authorities said resembles a pyramid-selling scheme.
In a media release on Saturday (Aug 8), the police said the woman was arrested on Thursday following investigations into the platform, which is purportedly based in Vietnam.
Preliminary investigations indicate that she had actively promoted the scheme and recruited others to join. Users were required to download the “Fun Coffee” application and transfer Tether (USDT), a cryptocurrency pegged to the US dollar, into digital wallet addresses provided through the app.
"Users can subscribe to any of the investment plans listed within the application. The plans promise unrealistically high returns and offer additional commissions for recruiting others to join the scheme," said the Singapore Police Force (SPF).
"Participants of the investment scheme in Singapore were subsequently unable to withdraw their funds through the 'Fun Coffee' application."
Earlier this week, Hong Kong and Macau police arrested eight people linked to Fun Coffee after receiving more than 220 complaints about the platform.
The South China Morning Post reported that the victims had been cheated out of close to HK$100 million (US$12.7 million) by Fun Coffee. According to the report, the Fun Coffee app suddenly went offline on Jul 20, prompting the complaints.
On its Singapore website, Fun Coffee describes itself as "a lifestyle brand combining coffee, wellness and digital innovation into a community experience".
Under a section titled "Financial Model", it said its digital platform and app "connect users' activities and interactions into a unified system that rewards participation and fosters community growth".
It added that its goal is to create a platform where coffee experiences, lifestyle engagement and community participation "work together to support the global growth of the Fun Coffee network".
Its website also shows that it operated a cafe with a coffee-making robot at 202 Jalan Besar.
The woman who was arrested on Thursday is being investigated for offences under the Multi-Level Marketing and Pyramid Selling (Prohibition) Act.
If charged and convicted, she faces a jail term of up to five years, a fine of up to S$200,000 (US$156,000), or both.
"The police advise the public not to make any further payments or transfers to the scheme, even when approached by individuals claiming to represent 'Fun Coffee' or through requests made via the 'Fun Coffee' application," SPF said.
