Vietnam Police Arrest Five Over $386M Scheme Using Telegram and Fake Tokens to Defraud More Than 185,000 Investors

Crypto Fraud Syndicate Busted After $386 Million Pyramid Scheme Unravelled

A large-scale cryptocurrency scam disguised as an investment opportunity has been dismantled by Vietnamese authorities, following a 200-day investigation involving elite officers tracking suspects day and night.

The criminal operation, built around a deceptive blockchain project named Matrix Chain, is believed to have defrauded over 185,000 people, amassing nearly 394.2 million USDT—equivalent to VND10 trillion or $386 million.

How Matrix Chain Hooked Investors With Empty Promises

The scheme lured thousands with claims of “super large profits” and hefty commissions.

Investors were persuaded to download a software platform for a small entry fee of 1 USDT, granting access to what they believed was a legitimate trading system.

In reality, the token at the heart of it all—MTC—had no actual value.

Authorities say this was not just an ordinary scam but a structured multi-level pyramid model.

Regional recruiters played a key role, receiving 40% of the collected funds as commission, while 5% was funnelled into marketing campaigns.

The remainder?

Used for luxury purchases and property acquisitions in cities such as Hanoi, Bac Ninh, Hoa Binh, Hung Yen, and Thai Nguyen.

The suspects' cars were seized as evidence by the authorities.

Who Is Behind The Operation?

The alleged ringleader, Nguyen Quoc Hung, 41, was arrested on 28 May in southern Dong Nai Province along with four others, including 34-year-old Bui Thi Thanh Nga.

Police said the group operated across three major regions in Vietnam, supported by dozens of accomplices now under investigation.

Hung has reportedly confessed to hiring anonymous developers via Telegram in early 2023 to build the Matrix Chain platform.

Nguyen Quoc Hung, the alleged ringleader, pictured wearing a face mask as he was arrested in Dong Nai Province.

He paid $20,000 in Tether (USDT) for development, which was then integrated with SafePal wallets and a B2B Smart Trade system to receive investor deposits.

Authorities revealed Hung personally held a wallet containing 100 million MTC tokens.

This allowed him to manipulate prices internally and siphon additional funds from victims.

Multiple wallets were created to circulate funds and trade illegally on the black market.

How Social Media Fueled The Scam’s Growth

To maintain momentum and expand the user base, the team launched online promotional sessions and training events via Telegram and Facebook.

These channels were used to build communities, train new recruiters, and push targets that encouraged investors to make repeated deposits.

According to police, many victims were misled into believing that the project was backed by advanced blockchain technology and global partners.

Vietnam Has Banned Telegram Nationwide

The widespread use of Telegram in scams like Matrix Chain has contributed to the Vietnamese government’s decision to block the app nationwide.

The Ministry of Science and Technology ordered internet service providers to prevent Telegram’s activities in the country, citing “signs of law violation” and concerns over harmful content on nearly 70 percent of Telegram channels in Vietnam.

The government also highlighted Telegram’s role in distributing “antistate documents,” illegal trading, and data sales.

Telegram expressed surprise at the ban and stated they had been responding to legal requests from Vietnam, but the government claims the company failed to share user data crucial for criminal investigations.

Will Vietnam Regulate Crypto More Strictly?

Vietnam ranks high on global crypto adoption, sitting fifth on the Global Crypto Adoption Index according to Chainalysis data from last year.

However, incidents like Matrix Chain have renewed calls for tighter oversight.

In March 2025, Prime Minister Phạm Minh Chính ordered the Ministry of Finance and the State Bank of Vietnam to establish a legal framework for digital assets to ensure a more transparent environment for crypto users.

While regulations are being drafted, the Matrix Chain scandal highlights just how urgently those protections are needed.

A senior official from the Ministry of Public Security confirmed that more arrests are expected as investigations continue into the broader network behind the scam.