Vietnamese provincial police have reportedly apprehended five individuals involved in a sophisticated crypto scam network led by offshore criminals.
Local media reports that on October 4, authorities in Nghe An, a province bordering Laos and the Gulf of Tonkin, dismantled a scam ring operating out of Laos that was linked to fraudulent wire transfers. The group was known for “pig butchering” schemes and cryptocurrency investment fraud.
According to the police report, the scammers built trust with their victims by returning some of their invested funds as profits. Once the victims invested significant amounts, the scammers then locked the accounts, preventing any withdrawals.
In one of the reported scam instances, one of the scammers allegedly posed as a woman and gained the trust of a man from Ho Chi Minh City. The scammer ultimately deceived him into investing large sums in “Biconomynft,” which promised high returns. Over several months, the scammer defrauded the victim of more than 17.6 billion Vietnamese dong (approximately $700,000).
Vietnam has a strict stance on crypto crime. Last year, sixteen individuals faced trial at the Ho Chi Minh City People’s Court for kidnapping and stealing approximately $1.5 million in cryptocurrency from another victim.
This development is part of a broader trend, with law enforcement agencies worldwide intensifying efforts against criminal enterprises linked to cryptocurrency. In India, authorities recently announced that they are investigating the “Datameer” crypto trading app for allegedly defrauding over 700 individuals of approximately $119,000. The law enforcement agencies claimed that they are working with cyber experts to apprehend the perpetrators, who are believed to be scattered across India, with some links to Hong Kong.
Similarly, Brazilian authorities just launched “Operation Niflheim” to dismantle a multi-billion-dollar crypto-based money laundering operation spanning several cities. The investigation focuses on two companies in Caxias do Sul, which are suspected of facilitating the movement of approximately R$ 19 billion and R$ 15 billion between August 2019 and May 2024, with ties to illegal activities, including drug trafficking and smuggling.
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