Authorities in Vietnam have cracked down on a major cryptocurrency scam that defrauded over 400 locals and 100 businesses out of roughly $1.17 million.
According to local media, the Hanoi police have apprehended the general director and seven key suspects involved in a cryptocurrency fraud scheme involving the sale of a fake token created and operated by a company whose name translates to “Million Smiles.”
The scammers promised exorbitant returns on investments in the Quantum Financial System coin, which they claimed were backed by assets and treasures that were said to have been preserved by ancient family dynasties for hundreds of years.
Victims were also lured in with promises of access to an exclusive financial ecosystem, where they would receive capital support for business ventures without the need for collateral or interest payments.
Of course, those claims were false, and the QFS coin, as is the case with similar scams, was backed by nothing, the investigation revealed. During a raid on the company’s headquarters, police seized documents, computers, and other evidence, uncovering the extent of the fraud.
Police also managed to intervene just before a planned conference with 300 potential investors, preventing the scammers from further promoting the QFS coin and luring in more victims.
The scheme 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.
While active, authorities estimate the scheme may have scammed 100 businesses and nearly 400 individuals out of 30 billion Vietnamese dong ($1.17 million). The illicit funds were used to procure luxurious office spaces in upscale villa areas, creating an illusion of legitimacy to draw in more victims.
This was the second major crypto-related bust in Vietnam this quarter. In October, the police took down a major crypto romance scam network that tricked victims into making investments in a fake investing app called “Biconomynft.”
Meanwhile, incidents of crypto-related investment fraud made headlines multiple times this year.
In January, the Metropolitan Police in the United Kingdom seized over 61,000 Bitcoin from Chinese scammers running dubious schemes. More recently, two UK men were prosecuted for their involvement in a £1.5 million crypto investment scam.
Per a Sept. 9 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 investment fraud schemes grow increasingly sophisticated and deceptive, it’s more crucial than ever for individuals and businesses to stay informed, exercise caution, and thoroughly investigate opportunities before committing.
