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Vietnamese authorities have dismantled a nationwide cryptocurrency scam that defrauded over 138,000 investors, amassing nearly 10 trillion VND (approximately $400 million). The sophisticated operation was carried out under the guise of a fake virtual currency exchange known as MTC (Matrix Chain), according to local reports.

Months-Long Investigation Uncovers Massive Crypto Fraud

The Dong Nai Provincial Police spearheaded the investigation into the fraudulent scheme, with critical support from the Ministry of Public Security and other regional law enforcement agencies. After nearly 200 days of surveillance, evidence collection, and meticulous planning, authorities conducted coordinated raids across multiple provinces, leading to the arrest of the ringleader, Nguyen Quoc Hung, along with four key accomplices.

How the Scam Operated

The suspects reportedly created a counterfeit cryptocurrency platform using software developed for just 20,000 Tether (USDT), equivalent to 520 million VND. Investors were lured in with promises of high returns and additional rewards for recruiting others into the scheme, which mimicked a multi-level marketing (MLM) system. To join, participants were required to pay a 1 USDT “platform fee” through the SafePal wallet system.

The scam attracted a staggering 138,000 registered users, who collectively deposited over 394 million USDT, roughly equivalent to 10 trillion VND.

Misuse of Funds and Money Laundering

Authorities revealed that approximately 55% of the funds were misappropriated by the group for personal gain. The remaining funds were funneled into marketing campaigns, promotional events, and commission payouts for regional promoters. To obscure their illegal activities, the suspects allegedly laundered funds through real estate purchases in northern Vietnam, utilizing multiple digital wallets under fake identities to hide transactions.

Law enforcement agencies have seized significant assets, including digital evidence, and are working to identify additional accomplices while tracing the stolen funds.

A Landmark Victory Against Cybercrime

This successful operation coincides with the 80th anniversary of Vietnam’s People’s Public Security Force and is being hailed as a major achievement in the country’s fight against cybercrime. The investigation remains active as authorities continue to pursue leads and ensure justice for the victims.

Tips to Avoid Cryptocurrency Scams:

  • Always verify the legitimacy of cryptocurrency platforms before investing.
  • Be cautious of promises of guaranteed high returns or rewards for recruiting others.
  • Use trusted wallets and avoid paying unnecessary platform fees.
  • Research the team behind any crypto project and check for transparency.
  • Stay updated on local regulations and recent scams to protect yourself.

The rise in cryptocurrency scams highlights the importance of due diligence and caution among investors. As the industry continues to grow, staying informed is key to navigating this evolving financial landscape securely.

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