Hanoi police halted a crypto fraud scheme, saving hundreds from losing millions in a fake QFS investment.
Million Smiles deceived investors with promises of unbacked crypto wealth, exploiting cultural beliefs to lure victims.
Vietnamese authorities are ramping up efforts against crypto fraud as scams expand across Southeast Asia.
Hanoi police recently foiled an elaborate cryptocurrency fraud scheme that defrauded hundreds of Vietnamese citizens. The fraudulent operation, orchestrated by Million Smiles, a company promoting a fake cryptocurrency called QFS, had already swindled 30 billion Vietnamese dong (about $1.17 million). The company targeted both individuals and businesses, deceiving them with promises of huge returns and an exclusive financial ecosystem.
Deceptive Practices and False Promises
Million Smiles attracted victims through deceptive marketing tactics, claiming that its QFS token was linked to ancestral treasures and spiritual wealth. The company misled investors by promising access to a financial system that required no collateral or interest. It also falsely claimed that owning QFS could secure business funding. Consequently, the company charged individual investors up to 5 million dong ($190) and businesses up to 39 million dong ($1,350).
The fraud operation had reached a critical stage when police intercepted a meeting planned for 300 potential victims. Authorities raided Million Smiles’ headquarters, seizing computers, documents, and promotional materials. Investigations revealed that QFS was a fictitious asset and lacked any legal recognition in Vietnam.
Expansion Plans and Targeting Vulnerable Areas
Million Smiles had planned to expand its operations by holding a large conference on December 24, 2024, in Hanoi. The scheme aimed to further promote QFS, targeting more individuals and businesses. Most of the victims were from rural areas like Yen Bai, where the company exploited cultural beliefs. Moreover, Million Smiles created an illusion of credibility by renting luxurious villas and organizing high-profile events.
Authorities have now intensified their efforts to combat the growing trend of crypto-related fraud in Vietnam. The Million Smiles scam follows a broader crackdown on illegal crypto schemes in Southeast Asia. In the past few months, Vietnamese authorities have arrested several individuals involved in similar fraudulent operations. Additionally, they have issued public warnings, urging citizens to be vigilant when dealing with virtual currencies.
Growing Concerns in Southeast Asia
The Million Smiles case is part of an effort to address crypto fraud in Southeast Asia. In neighboring countries like India, thousands of citizens have fallen victim to similar scams. These schemes often trap individuals in forced labor situations, where they are coerced into participating in online scams and fraud.
Authorities in both Vietnam and India are working together to rescue victims and prevent further exploitation. Authorities urge the public to thoroughly verify any investment involving cryptocurrencies to avoid falling victim to deceptive schemes.