Vietnamese police have thwarted a cryptocurrency scam that had embezzled $1.17 million, saving 300 potential victims and uncovering counterfeit tokens.
Hanoi police have prevented 300 potential victims from investing in a sophisticated cryptocurrency scam that defrauded 30 billion VND (1.17 million USD) from around 100 businesses and 400 individuals.
According to Vietnam Television (VTV), Hanoi police arrested individuals linked to Million Smiles, a company operating an illegal and fraudulent cryptocurrency investment program targeting Vietnamese citizens.
Million Smiles promoted an internal cryptocurrency, QFS or Quantum Financial System, by using fraudulent advertisements linking it to ancestral treasures and spiritual claims.
In addition to promising unbelievable profits, this company falsely claimed that owning QFS would allow individuals and businesses to access the financial ecosystem with benefits like funding without collateral or interest.
Dismantling a sophisticated cryptocurrency scam
The law enforcement agency was initially believed to have blocked Million Smiles' plan to hold a meeting with 300 customers to further promote QFS. The scammers would pursue individuals to invest around 4-5 million VND (about $190) and up to 39 million VND ($1,350) for businesses in such meetings.
The police raided the company's headquarters, seizing documents, computers, and other materials. Subsequent investigations revealed that QFS tokens were counterfeit and not recognized under Vietnamese law.
Vietnam is not a safe haven for cryptocurrency fraud.
The Vietnamese government has a strong record in suppressing cryptocurrency. In October, a provincial police force in Vietnam arrested five individuals linked to a sophisticated cryptocurrency scam network led by bad actors from abroad.
On October 4, police in Nghe An, a province of Vietnam bordering Laos and the Gulf of Tonkin, dismantled a scam ring based in Laos related to fraudulent transfers. The scammers were led by individuals from abroad specializing in pig-butchering scams and cryptocurrency investments.
One of the scammers, posing as a woman, gained the trust of a man from Ho Chi Minh City. The victim was eventually tricked into investing in 'Biconomynft', a fake app promising exorbitant returns. Over several months, the scammer stole more than 17.6 billion VND (700,000 USD) from the victim.