SINGAPORE — People who lost money through the troubled Fun Coffee investment platform are now facing another danger: scammers claiming they can recover the missing funds — but only after victims pay more money first.
The Singapore Police Force issued a warning on Aug 27 about a new wave of fund recovery scams targeting people affected by Fun Coffee, an investment platform already under investigation in Singapore and linked to substantial reported losses elsewhere in the region.
According to police, the scammers approach victims online while pretending either to represent Fun Coffee itself or to work for a third-party recovery service.
Their pitch is designed to sound like a lifeline.
Victims are told their original investment can supposedly be recovered — but first they must transfer money for a “deposit”, “tax”, “administrative fee” or some other payment said to be necessary before the funds can be released.
The promised recovery never arrives.
Police said victims realised they had been deceived after making the requested transfers but failing to receive the money they were promised.
A Scam After the Alleged Scam
The warning adds another layer to the Fun Coffee saga.
Earlier in August, Singapore police said they were investigating the platform, which is purportedly based in Vietnam and offered users investment plans through an application.
Participants were instructed to transfer Tether, or USDT — a cryptocurrency designed to track the US dollar — into digital-wallet addresses supplied through the app.
Police said the plans promised what they described as “unrealistically high returns”, while participants could receive additional commissions for recruiting other people.
Singapore participants subsequently found themselves unable to withdraw their money from the Fun Coffee application.
A 49-year-old woman was arrested in Singapore on Aug 6 in connection with the investigation after preliminary police investigations found that she had promoted the investment scheme and recruited others.
She was arrested for an offence under Singapore’s Multi-Level Marketing and Pyramid Selling (Prohibition) Act.
If eventually charged and convicted of the offence cited by police, the maximum penalty is five years’ imprisonment, a fine of up to S$200,000, or both.
Importantly, an arrest is not a conviction, and the investigation remains ongoing.
Singapore Investor Says She Put in About S$400,000
The potential impact in Singapore became clearer through accounts from investors.
The Straits Times reported that one Singapore-based investor said she had put about S$400,000 into the platform and was unable to recover the money.
Other reporting said the 48-year-old woman had initially received returns before reinvesting them. She later found herself unable to withdraw her money after problems emerged with the platform in July.
Media reports have said the Fun Coffee app went offline around July 20, although Singapore police have framed the confirmed issue more cautiously: participants subsequently became unable to withdraw their funds through the application.
Hong Kong Losses Climbed Above HK$100 Million
The Fun Coffee investigation is not limited to Singapore.
Authorities in Hong Kong and Macau arrested eight people in early August in connection with suspected fraud linked to the operation.
Hong Kong police had received 225 complaints, according to South China Morning Post reporting, with reported losses initially reaching about HK$94 million.
By Aug 5, police said the reported losses had climbed to approximately HK$104 million, while the number of complaints remained at 225.
One Hong Kong legislator warned that the real number of people affected could eventually exceed 1,000, although that was his assessment based on victims who had approached him — not an official police victim count.
Fun Coffee had described itself online as a Vietnam-based coffee investment enterprise and reportedly claimed assets exceeding US$1 billion and a workforce of more than 5,000.
Previous reporting also cited advertised annual returns ranging from roughly 197 per cent to 278 per cent. Those figures were promotional claims associated with the platform and should not be treated as independently verified financial performance.
Why the New “Recovery” Scam Is Particularly Dangerous
The latest warning highlights a tactic increasingly attractive to scammers: targeting people who have already lost money.
Someone desperate to recover a large investment may be more willing to respond to a message claiming that the missing funds have been located.
The scammer may also appear unusually convincing because they already know which platform the victim invested in.
But Singapore police are warning that requests for more money should immediately raise suspicions.
Legitimate recovery should not depend on blindly transferring deposits, supposed taxes or processing fees to strangers who contacted a victim online.
What Fun Coffee Investors Should Do Now
Police have urged victims and members of the public to independently verify anyone claiming to offer investment or scam-recovery services.
They should be particularly cautious of people claiming to represent Fun Coffee or third-party recovery companies while requesting additional payments.
Police also recommend using the ScamShield app, enabling two-factor authentication on cryptocurrency and other important accounts, and setting transaction limits where possible.
Anyone who believes their bank account or payment credentials have been compromised should contact their bank immediately.
Suspected scams can also be reported to police, while scam-related advice is available through Singapore’s ScamShield Helpline at 1799.
The most important warning for people already caught in the Fun Coffee collapse may therefore be the simplest:
Losing money once does not mean the next person promising to get it back is there to help.
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