Vietnam Police Save 300 Investors From Huge Crypto Fraud Scheme

Police Thwart Major Cryptocurrency Scam in Hanoi, Saving 300 Potential Victims

Authorities in Vietnam's capital, Hanoi, have successfully intervened in an elaborate cryptocurrency scam that had already defrauded over 100 businesses and 400 individuals out of a staggering 30 billion Vietnamese dong (around $1.17 million).

The perpetrators behind the scam, a company named Million Smiles, were on the verge of pulling in hundreds more victims when police acted decisively to stop their plans.

The police department in Hanoi conducted a raid on the Million Smiles headquarters.

Million Smiles: A Web of Lies and Deception

The company, Million Smiles, had created a fake cryptocurrency known as QFS, or Quantum Financial System.

Promising enormous financial gains, the company touted QFS as a magical digital currency tied to ancestral treasures and spiritual claims.

Their pitch was simple: investing in QFS would open the door to a high-profit financial ecosystem offering benefits like collateral-free funding and interest-free loans.

This persuasive messaging lured many into believing that they were gaining access to an exclusive and lucrative financial opportunity.

QFS, however, was completely fictitious, and investigators confirmed that the token had no legal standing in Vietnam, rendering the entire operation a scam.

A Close Call: Police Raid Foils Fraudulent Investment Push

Just as Million Smiles planned a large meeting to recruit new investors, Hanoi police sprang into action.

The meeting was expected to attract around 300 participants, with individuals being convinced to invest between 4 to 5 million dong ($190) and businesses being encouraged to invest up to 39 million dong ($1,350).

The police raided the company’s headquarters before the event could take place, seizing critical evidence such as documents and computer equipment that confirmed the fraudulent nature of the entire operation.

The authorities acted just in time, preventing even more people from falling victim to the scam.

"They were close to gathering the final round of funds," one investigator explained. "It’s clear the operation had already gained significant momentum."

Vietnam's Ongoing Battle Against Crypto Fraud

This intervention adds to a growing list of successful crackdowns by Vietnamese authorities targeting crypto scams.

In October 2024, police dismantled a large scam network in Nghe An province, near the Laos border.

The operation was tied to a series of fraudulent crypto investment schemes, including pig-butchering scams, where victims are initially tricked with small returns before being deceived into investing significant amounts.

Two members of the Vietnamese cryptocurrency scam ring arrested.

One such case involved a Ho Chi Minh City man who was duped by a scammer pretending to be a woman.

Over several months, the scammer manipulated him into investing more than 17.6 billion dong ($700,000) into a fake investment platform, Biconomynft.

This was just one example of how international and domestic fraud rings are using increasingly sophisticated methods to target individuals and businesses in Vietnam.

Crypto Fraud Expands Beyond Vietnam: A Global Threat

Vietnam is not the only country grappling with crypto-related fraud.

Authorities around the world are facing a rise in cryptocurrency scams, with sophisticated new methods involving malware and phishing attacks.

In the past few months, cybersecurity experts have raised alarms about targeted malware campaigns aimed at Web3 professionals, stealing sensitive information and crypto assets.

One such campaign used a fake meeting app called “Meeten,” which later rebranded as “Meetio,” to deliver a malware tool that extracted vital personal data.

Furthermore, earlier this year, the FBI warned about North Korean hackers using fake job offers to infiltrate crypto firms and decentralized finance (DeFi) projects with malicious intent.

These global threats are only intensifying, with hackers deploying artificial intelligence to create realistic-looking websites and social media profiles that mimic legitimate companies.

The situation has left many concerned about the vulnerabilities within the crypto industry.

Is Vietnam’s Crackdown Enough to End Crypto Fraud?

Despite a strong track record of police action, including last year’s arrest of individuals connected to a cybercrime group known as FIN9, which stole over $71 million from companies in the US, the ongoing rise of these scams highlights an industry fraught with dangers.

While authorities have made significant strides in curbing fraudulent activities, the rapidly evolving nature of crypto scams means that constant vigilance is required to protect potential victims.

With the rise of scams like Million Smiles and others, the battle against crypto fraud in Vietnam remains ongoing, as law enforcement continues to track down the perpetrators and prevent new waves of fraudulent activity.