Vietnam Dismantles Major Ponzi Scheme Involving Paynet Coin
In a significant crackdown on financial crime, authorities in Vietnam have dismantled a large-scale Ponzi scheme involving the cryptocurrency Paynet Coin (PAYN), claiming it to be the largest of its kind in the country. On August 11, the Phu Tho Provincial Police announced the detention of the main suspect, Nguyen Van Ha, a 45-year-old from Gia Lai Province, along with several associates accused of orchestrating this multibillion-dollar fraud.
Operation Details
The operation was characterized as an illegal multilevel marketing (MLM) initiative that deceived thousands of investors, both locally and internationally, under the guise of a crypto investment platform. Jurisdictional reports indicate that the fraudsters used websites such as FMCPAY.com and AFF2024.com to promise potential investors monthly returns between 5% and 9%, coupled with incentives for recruiting further participants. This fundraising mechanism utilized investments from newcomers to remunerate earlier investors—a hallmark of fraudulent Ponzi schemes.
Despite lacking formal training in information technology, Ha purportedly hired developers to construct the PAYN blockchain and a complex security system that lent an air of legitimacy to the operation. The scheme made numerous false claims, asserting that the PAYN currency could be utilized for booking services like flights and hotels, while misleading investors into believing that its exchange was officially registered in the United States.
Fraudulent Activities and Arrests
To enhance credibility, the perpetrators hosted extravagant seminars in luxury venues, promoting PAYN as a viable high-yield investment. Authorities allege that Ha diverted approximately $200 million for personal gain. Even during the arrests, the scheme was reportedly still attracting funds from investors in various countries, including India and the Philippines.
As part of the investigation, police have reportedly frozen and confiscated assets totaling around $38 million, comprising cash, foreign currencies, and real estate. To date, 20 individuals have been apprehended, and both Ha and his deputy, Phan Viet Lap, face serious allegations including violations of MLM regulations and misappropriation of assets through electronic networks under Vietnamese law.
Broader Context of Cryptocurrency Vulnerabilities
Meanwhile, in a broader context, the cryptocurrency sector continues to face severe threats, with a recent report from CertiK noting that losses from hacks and scams in the first half of 2025 alone reached an alarming $2.47 billion. Although figures indicated a decline in incidents during the second quarter compared to the first, the total loss is on an upward trajectory, highlighting the ongoing vulnerabilities within digital asset investments.
