Vietnamese authorities have allegedly prevented losses of nearly 30 billion Vietnamese dong ($1.17 million) and saved 300 potential victims from fraudulent investments in a major cryptocurrency scam token.
Hanoi City Police arrested individuals linked to Million Smiles, the company behind an illegal cryptocurrency scheme. The scheme centred around a fictitious cryptocurrency called Quantum Financial System (QFS).
According to Vietnam’s national broadcaster, VTV, the company lured investors by promoting the fake cryptocurrency as a gateway to an exclusive financial ecosystem tied to ancestral treasures and spiritual beliefs. They also falsely promised benefits like interest-free funding without collateral. They hosted promotional events during which the victims were persuaded to invest amounts ranging from 4–5 million dong ($190) for individuals to 39 million dong ($1,350) for businesses.
Authorities intercepted plans for a meeting targeting 300 customers, raided Million Smiles’s headquarters, and seized crucial evidence, including documents and computers. They claimed that their investigations confirmed that QFS was fraudulent and unrecognized under Vietnamese law.
This crackdown is part of an ongoing effort by Vietnamese authorities to combat cryptocurrency-related fraud. On October 4, 2024, police in Nghe An province dismantled a cross-border scam ring linked to fraudulent wire transfers in its jurisdiction. The group was notorious for “pig butchering” schemes and cryptocurrency investment fraud.
According to a police report, scammers built trust with their victims by initially returning small portions of their invested funds as supposed profits. One notable case involved a Ho Chi Minh City man who was defrauded of 17.6 billion dong ($700,000) after being duped into investing in Biconomynft, a fake app promising high returns. Scammers initially gained victims’ trust by returning small profits before locking accounts and blocking withdrawals.
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