Vietnamese Police Bust $1.2 Million Crypto Fraud Case

According to Vietnams national television broadcaster VTV, Hanoi police have arrested individuals associated with Million Smiles, a company accused of orchestrating an illegal and fraudulent cryptocurrency investment scheme targeting Vietnamese citizens.

Million Smiles promised unrealistic returns and claimed that purchasing its internal token, QFS (Quantum Financial System), would grant individuals and businesses access to its financial ecosystem. This included benefits such as unsecured or interest-free financing. The scheme reportedly defrauded approximately 100 businesses and 400 individuals, amassing 30 billion Vietnamese dong (approximately $1.2 million).

Rising Cryptocurrency Crime in Vietnam

Cryptocurrency-related crime has been on the rise in Vietnam. According to the Department of Cybersecurity and High-Tech Crime Prevention, scams involving cryptocurrency accounted for 35% of all cybercrime cases in 2023, marking a 12% increase from the previous year.

Common types of scams include multi-level marketing (pyramid schemes), fake investment platforms, and high-return promises. Criminals often use social media or instant messaging apps to lure victims with the prospect of high returns. Additionally, some criminals use cryptocurrency trading platforms for money laundering, adding complexity and secrecy to their activities.

Government Measures to Combat Crypto Crime

In response to the growing prevalence of cryptocurrency crime, the Vietnamese government has implemented a series of countermeasures. Key steps include issuing Directive No. 10/CT-TTg, which bans the use of virtual currencies like Bitcoin for payments and transactions, and instructing authorities to strengthen monitoring of cryptocurrency activities. The State Bank of Vietnam has also established a specialized team to study risks in the virtual currency market and plans to introduce a comprehensive regulatory framework by 2025.

On the enforcement front, the Ministry of Public Security has partnered with local law enforcement agencies to crack down on illegal trading platforms and fraudulent networks. Between 2022 and 2023, Vietnamese police dismantled over 200 cryptocurrency-related criminal cases, arrested more than 300 suspects, and seized billions of dong in illicit gains. Additionally, Vietnam is collaborating with international law enforcement agencies to enhance intelligence sharing and track cross-border cryptocurrency crimes.