Authorities in Vietnam Crack Down on $1.17 Million Cryptocurrency Scam
Authorities in Vietnam have successfully dismantled a major cryptocurrency scam that defrauded over 400 individuals and 100 businesses of approximately $1.17 million.
The Hanoi police have apprehended the general director and seven key suspects involved in a fraudulent scheme that revolved around a fake token created and operated by a company known as “Million Smiles.”
The scammers enticed victims with promises of high returns on investments in the Quantum Financial System coin, claiming that the token was backed by assets and treasures held by ancient family dynasties. Additionally, victims were led to believe that they would gain access to an exclusive financial ecosystem offering capital support for business ventures without the need for collateral or interest payments.
However, investigations revealed that the QFS coin had no actual backing, and the promises made by the scammers were entirely false. Following a raid on the company’s headquarters, police seized incriminating evidence such as documents and computers, exposing the extent of the fraud.
Authorities were able to prevent the scammers from further promoting the QFS coin and attracting more victims by intervening just before a planned conference with 300 potential investors.
The scam targeted individuals with investment amounts ranging from 4–5 million dong (approximately $190) and businesses with demands of up to 39 million dong (around $1,350) per coin.
Impact and Fallout
The scheme is estimated to have defrauded 100 businesses and nearly 400 individuals out of 30 billion Vietnamese dong ($1.17 million). The illicit funds were used to acquire luxurious office spaces in upscale villa areas, creating a facade of legitimacy to lure in more victims.
This crackdown marks the second significant crypto-related bust in Vietnam this quarter, following the dismantling of a crypto romance scam network in October that operated under the guise of a fake investing app called “Biconomynft.”
Global Trend of Crypto Investment Fraud
Incidents of cryptocurrency investment fraud have made headlines throughout the year, with law enforcement agencies worldwide cracking down on fraudulent schemes. In the United Kingdom, the Metropolitan Police seized over 61,000 Bitcoin from Chinese scammers involved in dubious schemes, while two UK men were prosecuted for their roles in a £1.5 million crypto investment scam.
According to a report from the Federal Bureau of Investigation, investment scams accounted for 71% of total losses incurred from crypto-related scams and frauds in 2023. As fraudulent schemes become increasingly sophisticated and deceptive, it is essential for individuals and businesses to exercise caution, conduct thorough due diligence, and stay informed before committing to any investment opportunity.