Vietnamese Authorities Disrupt Major Cryptocurrency Fraud
Authorities in Vietnam have apprehended a criminal syndicate linked to a massive cryptocurrency fraud that has reportedly deceived an estimated 60,000 individuals out of nearly $400 million (approximately VND10 trillion). According to the Ministry of Public Security, a dedicated team comprising highly skilled officers has been instrumental in a 200-day operation that took down the infamous Matrix Chain network.
Operation Details
Victims were lured by promises of substantial profits and generous commissions, only to discover that the digital tokens they purchased held no real value. The operation led to the arrest of five individuals, including four males and one female, born between 1980 and 1991. Authorities executed searches at their homes and workplaces as part of the investigative process.
Reports indicate that the organized crime group set up a complex multi-tier structure that spanned three regions across Vietnam. Investors were misled into paying a small initial fee of 1 USDT for access to Matrix Chain’s software. Of the funds collected, approximately 40% was allegedly directed towards compensating “regional leaders” engaged in recruiting new users, while 5% was allocated for marketing efforts. The rest was purportedly used for extravagant expenditures by the gang members.
Key Figures and Tactics
Nguyen Quoc Hung, the alleged mastermind behind the scheme, was reportedly exploring investments in real estate, looking at properties in various cities throughout Vietnam. Promotional activities and training sessions were conducted via social media platforms like Telegram and Facebook, with the intention of motivating victims to make additional deposits through specific targets.
Scale of the Fraud
Estimates suggest that Matrix Chain accrued more than 185,000 registered accounts, which collectively deposited 394.2 million USDT funneled through SafePal wallets. It has been reported that Hung admitted to hiring anonymous developers through Telegram at the cost of $20,000 to help build the platform in 2023. Furthermore, he is believed to be in possession of a wallet containing 100 million MTC tokens along with an accomplice, manipulating its market value for further illicit gains.
Broader Investigations and Regulatory Response
Recent investigations have expanded to include dozens of additional suspects associated with this alleged pyramid scheme. According to data from Chainalysis from last year, Vietnam ranked fifth in the Global Crypto Adoption Index, though it saw a decline from its previous position in 2023. In a response to the growing trend of crypto investments, Prime Minister Phạm Minh Chính recently tasked the Ministry of Finance and the State Bank of Vietnam to develop regulations that would create a safer and more transparent digital asset ecosystem.
