Vietnamese authorities have successfully thwarted a major cryptocurrency scam, protecting over 300 potential victims and uncovering fraudulent tokens tied to the scheme.
Action by Authorities
The Hanoi Police Department took decisive action to shield individuals and businesses from an expansive fraud operation that had already embezzled approximately 30 billion Vietnamese dong, equating to around $1.17 million. This elaborate scam, which targeted both corporations and private citizens, involved about 100 businesses and a staggering 400 victims.
Reports from VTV, Vietnam’s national broadcaster, reveal that several people connected to a company called Million Smiles were arrested. This organization is under scrutiny for allegedly masterminding a deceptive cryptocurrency investment operation that primarily preyed on Vietnamese citizens.
Details of the Scam
Million Smiles promoted a supposed cryptocurrency known as the Quantum Financial System (QFS), employing misleading tactics that misguidedly linked it to spiritual gains and ancestral riches. They enticed investors with promises of exaggerated returns, claiming that ownership of QFS granted customers access to a financial ecosystem that offered interest-free funding without the need for collateral.
Authorities discovered that Million Smiles had plans to host an event for 300 customers, aiming to lure more people into investing in QFS. Reports indicated that attendees were encouraged to invest between 4 to 5 million dong (roughly $190) each, with businesses being drawn in for investments as high as 39 million dong (about $1,350).
During a police raid at the company’s office, officers seized numerous documents, computers, and other materials crucial for the investigation. Subsequent inquiries revealed that the QFS token does not exist and violates Vietnamese regulatory standards.
Continued Crackdown on Fraud
Vietnamese officials are taking a strong stance against cryptocurrency-related fraud. Just last month, law enforcement in a provincial Vietnamese area arrested five suspects tied to a sophisticated scam allegedly operated by offshore individuals.
On October 4, police in Nghe An, a region bordering Laos and the Gulf of Tonkin, dismantled a scam ring based in Laos linked to fraudulent wire transfers. This network was run by offshore operators who employed a manipulative tactic known as “pig-butchering” to exploit victims within investment scams.
Among the most notable cases was that of a scammer posing as a woman who won the trust of a male victim from Ho Chi Minh City. This scammer successfully misled the individual into investing in a non-existent application called “Biconomynft,” which falsely promised significant profits. Over several months, this perpetrator managed to siphon off over 17.6 billion dong (about $700,000) from the victim using sophisticated manipulation techniques.
Source: Cointelegraph
