Vietnam Dismantles $400 Million Crypto Scam Operating Fake Exchange

Vietnamese authorities have uncovered and dismantled a massive cryptocurrency scam that swindled nearly 10 trillion VND (approximately $400 million) from over 138,000 investors across the country.

The fraudulent operation, disguised as a legitimate virtual currency exchange called Matrix Chain (MTC), promised high returns and rewards for recruiting new participants, operating as a multi-level marketing scheme.

Authorities arrested the mastermind, Nguyen Quoc Hung, and four accomplices in coordinated raids across multiple provinces after the Dong Nai Provincial Police, supported by the Ministry of Public Security and regional forces, conducted a meticulous 200-day investigation.

Did You Know?
Vietnam ranks among the top 10 countries globally for cryptocurrency adoption, with over 20% of the population engaging in crypto transactions, according to recent industry data. This high adoption rate makes the country a prime target for scams exploiting public interest in digital currencies.

Anatomy of the Scam

The scam revolved around a fake cryptocurrency platform built with software purchased for 20,000 Tether (USDT), equivalent to 520 million VND. The scam lured investors with promises of substantial profits, requiring them to pay a 1 USDT "platform fee" via the SafePal wallet to participate.

The scheme exploited the growing interest in cryptocurrencies in Vietnam, amassing over 394 million USDT in deposits.

Approximately 55% of the funds were diverted for personal use by the perpetrators, while the remainder fueled marketing campaigns, lavish events, and commissions for regional promoters.

The group further obscured their activities by laundering money through real estate purchases in northern Vietnam and using multiple wallet identities to mask transactions.

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Law Enforcement’s Response

The arrests represent a major victory in Vietnam’s battle against cybercrime, coinciding with the 80th anniversary of the People’s Public Security Force. Police have seized assets, including digital evidence, and are continuing investigations to identify additional accomplices and trace the flow of stolen funds.

Recent reports indicate that Vietnam has intensified its crackdown on fraudulent crypto schemes, with authorities warning of increased vigilance as digital currency adoption grows.

The MTC scam highlights the risks in Vietnam’s rapidly expanding crypto market, where regulatory frameworks are still evolving to address sophisticated financial crimes.