Police arrest woman in Singapore after collapse of alleged Fun Coffee ponzi scheme
A 49-year-old woman has been arrested in Singapore for her role in promoting the 'Fun Coffee' investment scheme, which authorities have labeled a pyramid scheme. The platform, which promised high returns via cryptocurrency, has left investors unable to withdraw funds as authorities across Asia investigate the collapse.
Why it matters
The case serves as a warning about the risks of cryptocurrency-based investment scams and the prevalence of multi-level marketing fraud.
The Straits Times visited Fun Coffee’s registered address at 202 Jalan Besar on Aug 7 and found a coffee vending machine at the entrance.
Listen SINGAPORE – A 49-year-old woman was arrested on Aug 6 in connection to an ongoing police investigation involving the Fun Coffee platform .
In a statement on Aug 8, the police said the woman had actively promoted the Fun Coffee investment scheme and recruited others to join.
To participate, users had to install an app and transfer Tether (USDT) , 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,” said the police. “Participants of the investment scheme in Singapore were subsequently unable to withdraw their funds through the Fun Coffee application.”
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