Authorities in Vietnam have cracked down on a major cryptocurrency scam that has defrauded more than 400 locals and 100 companies of around $1.17 million.
According to local media, the Hanoi police did so arrested the general manager and seven main suspects involved in a cryptocurrency fraud involving the sale of a fake token created and managed 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 was backed by assets and treasures allegedly held 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, these claims were false, and the QFS coin, as is the case with similar scams, had nothing to back it up, the investigation found. During a raid on the company’s headquarters, police seized documents, computers and other evidence, revealing 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 more victims.
The scheme targeted individuals with investment amounts ranging from 4 to 5 million dong (about $190) and companies with demands of up to 39 million dong (about $1,350) per coin.
Although active, authorities estimate the scheme may have defrauded 100 companies and nearly 400 individuals of VND30 billion ($1.17 million). The illegal funds were used to purchase luxury office spaces in luxury residential areas, creating an illusion of legitimacy and attracting more victims.
This was the second major crypto-related crisis in Vietnam this quarter. In October, police took down a major crypto-romance scam network that lured victims into investing in a fake investment app called ‘Biconomynft’.
Meanwhile, incidents of crypto-related investment fraud made headlines several times this year.
In January, the Metropolitan Police in the United Kingdom seized more than 61,000 Bitcoin from Chinese scammers with dubious plans. More recently, two British men were prosecuted for their involvement in a £1.5 million crypto investment scam.
According to a September 9 report from the Federal Bureau of Investigation, investment scams were responsible for 71% of total losses from crypto-related scams and fraud in 2023.
With investment fraud becoming increasingly sophisticated and deceptive, it is more important than ever for individuals and companies to stay informed, exercise caution, and thoroughly investigate the possibilities before committing.
