Woman arrested in connection to 'Fun Coffee' Ponzi scheme

The police arrested a woman on Thursday (Aug 6) in connection to an ongoing investigation relating to an alleged Ponzi scheme linked to "Fun Coffee", a business purported to have originated from Vietnam.

Preliminary investigations found that the 49-year-old woman had actively promoted the "Fun Coffee" investment scheme and recruited others to join it, the police said on Saturday.

In order to participate in this scheme, users had to install the "Fun Coffee" app and transfer Tether, a cryptocurrency pegged to the US dollar, into wallet addresses provided through the app.

"The plans promise unrealistically high returns and offer additional commissions for recruiting others to join the scheme. Participants of the investment scheme in Singapore were subsequently unable to withdraw their funds through the 'Fun Coffee' application," the police said.

The Straits Times reported that the app went offline on July 20. 

Authorities in Hong Kong and Macau arrested eight people in total with 200 people losing nearly HK$100 million (S$16.3 million). A number of investors in Singapore made police reports.

The woman was arrested for promoting or participating in an unlicensed multi-level marketing scheme or arrangement under the Multi-Level Marketing and Pyramid Selling (Prohibition) Act 1973.

If charged and convicted, the woman may face up to five years in prison, a fine no more than $200,000, or both.

The police advised 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 app.

The public are also advised to be cautious and adopt precautionary measures when making investment decisions, including never remitting funds to personal or unregistered accounts, to conduct independent checks or investment opportunities, enabling robust security on personal accounts, and reporting suspicious listings promptly.

They may also call the police hotline at 1800-255-0000 or submit it online to report any information or clarify any doubts.

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daoen.wong@asiaone.com