Vietnam busts $400m crypto scam running fake exchange

Vietnamese authorities have arrested key figures behind a nationwide cryptocurrency scam that defrauded tens of thousands of investors out of nearly 10 trillion VND (approximately $400 million). 

The fraud ring operated under the guise of a fake virtual currency exchange called MTC (Matrix Chain), according to local reporting.

The Dong Nai Provincial Police led the months-long investigation with support from the Ministry of Public Security and other regional forces.

After nearly 200 days of surveillance and evidence collection, officers arrested the group’s ringleader Nguyen Quoc Hung and four accomplices during coordinated raids across multiple provinces.

The suspects are accused of creating a bogus cryptocurrency platform using software built for 20,000 Tether (USDT) (520 million VND). 

Investors were promised large profits and rewards for recruiting others into the scheme, which operated like a multi-level marketing system. Participants had to pay a 1 USDT “platform fee” via the SafePal wallet system to join.

Authorities say the scam attracted over 138,000 registered users, who collectively deposited more than 394 million USDT (~10 trillion VND).

Crypto scams and money laundering 

Roughly 55% of the funds were siphoned off by the group for personal use, while the rest was spent on marketing, events, and commissions for regional promoters.

The group allegedly laundered funds through real estate purchases across northern Vietnam, using wallets under multiple identities to obscure transactions. Police have seized assets and digital evidence for further investigation.

The operation’s success coincides with the 80th anniversary of the People’s Public Security Force and is being celebrated as a major win in Vietnam’s fight against cybercrime. Investigations are ongoing as police continue to identify additional accomplices and trace stolen funds.