Lady arrested in Singapore as a part of probe into Fun Coffee funding scheme

SINGAPORE: A 49-year-old girl has been arrested in Singapore over her alleged position in selling an funding scheme linked to the Fun Coffee platform, which authorities mentioned resembles a pyramid-selling scheme.

In a media launch on Saturday (Aug 8), the police mentioned the girl was arrested on Thursday following investigations into the platform, which is purportedly based mostly in Vietnam.

Preliminary investigations point out that she had actively promoted the scheme and recruited others to affix. Users had been required to obtain the “Fun Coffee” software and switch Tether (USDT), a cryptocurrency pegged to the US greenback, into digital pockets addresses supplied by way of 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,” mentioned 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 individuals linked to Fun Coffee after receiving greater than 220 complaints in regards to the platform.

The South China Morning Post reported that the victims had been cheated out of near HK$100 million (US$12.7 million) by Fun Coffee. According to the report, the Fun Coffee app all of a sudden went offline on Jul 20, prompting the complaints.

On its Singapore web site, Fun Coffee describes itself as “a lifestyle brand combining coffee, wellness and digital innovation into a community experience”.

Under a bit titled “Financial Model”, it mentioned 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 aim is to create a platform the place espresso experiences, way of life engagement and neighborhood participation “work together to support the global growth of the Fun Coffee network”.

Its web site additionally reveals that it operated a restaurant with a coffee-making robotic at 202 Jalan Besar.

The girl who was arrested on Thursday is being investigated for offences beneath the Multi-Level Marketing and Pyramid Selling (Prohibition) Act.

If charged and convicted, she faces a jail time period of as much as 5 years, a superb of as much as S$200,000 (US$156,000), or each.

“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 mentioned.