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Hong Kong and Macau police arrested eight people between August 1 and August 3, 2026, in a joint operation dismantling “Fun Coffee,” a crypto-linked investment scheme that used a coffee shop front to solicit victims and generated an estimated MOP100 million (US$12.37 million) in illegal proceeds.
The coordinated operation, carried out between August 1 and August 3 by Macau’s Judiciary Police (PJ) and the Hong Kong Police Force, targeted a syndicate that allegedly disguised itself as a coffee investment business to recruit victims.
Authorities say the mln ponzi scheme relied on cryptocurrencies and a pyramid-style structure to attract investors with promises of high returns while concealing its true nature.
The investigation revealed that the alleged mln ponzi scheme blended a seemingly legitimate coffee business with cryptocurrency investments to gain the trust of potential victims.
Speaking at a press conference on Tuesday, Judiciary Police spokespersons said the operation was conducted jointly with the Hong Kong Police Force, leading to the arrest of eight suspects connected to the cross-border fraud network.
According to PJ, two of those arrested were women in Macau aged 52 and 64. The pair have since been referred to the Public Prosecutions Office for further legal proceedings.
Authorities said the investigation found that the women were responsible for overseeing local operations in Macau after receiving instructions from a Hong Kong-based organizer in November 2025.
To attract customers, the suspects allegedly opened a coffee outlet in Macau’s busy Horta e Costa district and distributed free drinks to members of the public before introducing them to what was presented as a lucrative investment opportunity.
Investigators said investors were promised substantial profits through a technology project allegedly linked to coffee production, while the operation secretly functioned as an mln ponzi scheme built around cryptocurrency transactions.
Police believe cryptocurrencies played a central role in enabling the mln ponzi scheme to operate while making investigations more difficult.
“The syndicate strategically adopted cryptocurrencies and a pyramid scheme to evade investigation.” — Judiciary Police (PJ), Macau.
According to PJ investigators, victims were instructed to transfer funds through a designated cryptocurrency mobile application controlled by the organization.
The application reportedly remained operational until July this year, when investors began noticing irregularities after the coffee shop suddenly ceased operations.
Authorities said that was the point many victims realized they had likely fallen victim to the mln ponzi scheme, prompting complaints to law enforcement agencies in both Macau and Hong Kong.
Despite the evidence presented by investigators, the two women arrested in Macau denied any involvement in criminal activity.
“They had never met their recruiters in person.” — Judiciary Police (PJ), summarizing the suspects’ statements.
Police said the suspects claimed all communication with organizers took place online and that the funds used to operate the alleged business originated from Hong Kong.
The investigation into the wider network remains ongoing.
The scale of the alleged mln ponzi scheme became clearer as investigators compiled reports from victims across both jurisdictions.
The Judiciary Police said at least nine Macau residents have formally reported losses totaling approximately MOP3.6 million.
However, investigators believe the actual number of victims is significantly higher, estimating that at least 40 Macau residents may have invested in the scheme.
In Hong Kong, authorities have received 225 complaints linked to the operation, with reported financial losses reaching HK$94 million.
Combined, investigators estimate the alleged fraud generated nearly MOP100 million (US$12.37 million) in illegal proceeds.
The arrests mark one of the latest examples of law enforcement agencies increasing cooperation to combat cryptocurrency-enabled financial crimes that operate across borders.
Authorities say the investigation into the mln ponzi scheme has not concluded, and additional suspects or victims could emerge as evidence continues to be reviewed.
The Judiciary Police emphasized that the operation was the result of close intelligence-sharing with the Hong Kong Police Force during the coordinated enforcement action carried out from August 1 to August 3.
“The security force worked with their counterparts from the Hong Kong Police Force in a coordinated mission between 1 and 3 August.” — Judiciary Police (PJ), Macau.
The case also highlights how fraud syndicates continue to combine physical businesses with digital asset transactions to create an appearance of legitimacy while attracting investors seeking high returns.
For investigators, the alleged mln ponzi scheme demonstrates the growing challenge of tracking crypto-enabled fraud across multiple jurisdictions, particularly when organizers rely on online communications and cryptocurrency payment channels to distance themselves from local operators.
As authorities continue their investigation, they are expected to determine the full scale of the mln ponzi scheme, identify additional victims, and trace the movement of funds linked to the cross-border operation.
Primary source: Macau News Agency
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