Vietnamese authorities in Phú Thọ Province have dismantled the country’s largest cryptocurrency fraud operation to date. This information comes from a report published by Công an Nhân dân, a Vietnamese news source.
The ring allegedly marketed Paynet Coin (PAYN) using web addresses FMCPAY.com and AFF2024.com. Individuals were promised monthly returns ranging from 5% to 9%, with incentives offered for recruiting new participants into the scheme.
Investigations suggest that Nguyễn Văn Hà, hailing from Gia Lai Province, spearheaded the operation. Despite lacking formal tech credentials, he purportedly engaged programmers to develop the PAYN blockchain, related security protocols, and a referral-based rewards system.
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These components were allegedly created to lend credibility to the project. The fraudulent scheme additionally falsely advertised that PAYN could be used for travel reservations and that its exchange held registration within the United States.
To foster confidence among investors, the organization organized large-scale presentations in lavish venues. Law enforcement officials report that Hà personally siphoned off approximately $200 million from the investment scheme. Despite the ongoing arrests, funds continued to flow into the scheme from international sources, including India and the Philippines.
The Vietnamese news source VnExpress indicates that authorities have frozen or confiscated roughly $38 million encompassing cash, foreign currencies, and properties. As of now, twenty individuals are in custody.
Hà, in conjunction with his second-in-command, Phan Việt Lập, along with other members of the group, are facing accusations relating to violations of multi-level marketing statutes and exploitation of online platforms to illicitly obtain funds from individuals.
In related news, a coordinated effort involving US and global authorities led to the disruption of BlackSuit ransomware group’s operations and the seizure of around $1 million in cryptocurrency. Learn more about the details of the case here.