Crypto & Coffee Scam: police bust $100mn alleged investment fraud case

A coffee investment scam reported earlier in a TVB investigation has unravelled into a suspected 100 million-dollar fraud case.

Police have received over 230 relevant reports from victims.

In joint operations with Macao authorities, 8 people were rounded up.

What appeared to be an investment in Vietnam's coffee industry is now allegedly an elaborate scam.

The syndicate claimed to be developing high-tech coffee machines and coffee gene optimisation technologies, luring investors with promises of guaranteed returns through a mobile app.

Victims were persuaded to invest using cryptocurrency with entry-level plans requiring around 84,000 dollars and claiming returns of more than 5,000 dollars in

just 10 days.

Premium packages promised profits of up to 1 million dollars on a 200,000-dollar investment over 18 months -- more than quadrupling the principal.

The platform also offers daily sign-in rewards with seminars and social gatherings organised encouraging participants to recruit friends and relatives.

The police say many investors did not fully understand the companies behind these investments and after seeing others make small returns, they lowered their

guard and committed even more money.

The app suddenly went offline on July 20, leaving investors unable to access their funds.

Hong Kong and Macao authorities have received at least 234 reports involving losses of 97.5 million dollars.

Victims are aged between 32 and 83 including multiple retirees.

A 51-year-old woman suffered the biggest reported loss at 9.6 million dollars.

In a three-day operation, 8 were arrested with multiple raids carried out at their flats and locations including Kowloon Bay and Tsim Sha Tsui.

Police seized 147,000-dollar cash and have frozen suspected criminal proceeds worth around 610,000 dollars.