Hanoi Police Thwart Major Crypto Scam Targeting Hundreds

According to Cointelegraph, the Hanoi City Police Department in Vietnam has successfully intervened to prevent 300 potential victims from falling prey to a sophisticated cryptocurrency scam. This fraudulent scheme, orchestrated by a company named Million Smiles, had already swindled approximately 30 billion Vietnamese Dong ($1.17 million) from around 100 businesses and 400 individuals. The police apprehended individuals associated with Million Smiles, which was promoting an in-house cryptocurrency called QFS, or Quantum Financial System. The company used misleading advertising, falsely linking the cryptocurrency to ancestral treasures and spiritual claims, to lure investors. They promised unrealistic returns and claimed that owning QFS would grant access to a financial ecosystem offering benefits such as funding without collateral or interest. Law enforcement initially intercepted Million Smiles' plan to host a meeting with 300 customers to further promote QFS. During these meetings, the fraudsters aimed to persuade individuals to invest between 4–5 million dong (approximately $190) and up to 39 million dong ($1,350) for businesses. The Hanoi city police department conducted a raid on the company's headquarters, seizing documents, computers, and other materials. Investigations revealed that the QFS token was fictitious and not recognized under Vietnamese law. Vietnamese authorities have a strong track record of cracking down on crypto fraud. In October, a provincial police force in Vietnam arrested five individuals connected to an elaborate crypto scam network led by offshore actors. On October 4, police from Nghe An, a Vietnamese province bordering Laos and the Gulf of Tonkin, dismantled a Laos-based scam ring linked to fraudulent wire transfers. These scammers, led by offshore individuals, specialized in pig-butchering and crypto investment scams. One scammer, posing as a woman, gained the trust of a man from Ho Chi Minh City, eventually deceiving him into investing in 'Biconomynft,' a fake app promising exorbitant returns. Over several months, the scammer stole more than 17.6 billion dong ($700,000) from the victim. This incident highlights the ongoing efforts by Vietnamese authorities to combat crypto-related fraud and protect citizens from financial scams.