Vietnamese Police Bust $1M Crypto Scam, Safeguard 300 Victims
According to Vtv, the Hanoi City Police Department has successfully prevented 300 potential victims from falling prey to an elaborate crypto scam. The scam had already defrauded approximately 100 businesses and 400 individuals, amounting to 30 billion Vietnamese dong ($1.17 million).
The fraudulent operation, led by the company Million Smiles, was dismantled after months of investigation, resulting in the apprehension of key individuals involved in the scheme.
Million Smiles attracted victims by aggressively promoting its in-house cryptocurrency, called QFS (Quantum Financial System), through large-scale seminars, social media campaigns, and influencer endorsements.
The company presented QFS as a spiritually backed asset tied to ancestral treasures. It further enhanced its reach by leveraging community gatherings and religious events to instill trust and urgency among potential investors.
Million Smiles falsely claimed that holding QFS coins would grant access to a financial ecosystem offering benefits such as interest-free capital and participation in lucrative ventures.
Million Smiles’ Crypto Scam: How Vietnamese Police Saved Potential Victims
The fraudulent activities of Million Smiles began to unravel when Hanoi police detected suspicious movements by the company.
Trieu Nu Cuoi, the legal entity behind Million Smiles, had planned a large conference at Bao Son Paradise in An Khanh Commune, Hoai Duc District, Hanoi, on December 24, 2024, with the aim of targeting 300 more investors.
The scheme aimed to expand the sale of QFS coins, priced at 4-5 million VND ($190) for individuals and 39 million VND ($1,350) for businesses.
Acting swiftly, the Hanoi police coordinated an urgent raid on the company’s headquarters, seizing documents, computers, and promotional materials.
Investigations revealed that the QFS tokens were fictitious and lacked recognition under Vietnamese law.
Million Smiles managed to entice victims from rural areas like Yen Bai by exploiting cultural beliefs and promising future wealth. Individuals invested significant sums, hoping to achieve financial freedom.
The mastermind of the scam meticulously cultivated an image of credibility by renting luxurious villas and organizing high-profile events. Victims were persuaded that hidden treasures supported QFS and that purchasing the coin would secure their place in an exclusive economic ecosystem.
However, authorities discovered that the company’s leadership had no actual assets or backing for their claims.
Vietnam’s Ongoing Battle Against Crypto Fraud
Vietnamese authorities are cracking down on Million Smiles as part of a broader effort to address the increasing prevalence of crypto-related fraud.
This latest case follows a series of high-profile arrests, including the discovery in October 2024 of an elaborate crypto fraud and cybercrime network in Southeast Asia.
Thousands of Indian citizens are being lured by fake job offers that trap them in Southeast Asia’s cybercrime networks, forcing them to participate in crypto fraud, phishing, and online scams.
Many victims are detained in guarded compounds, stripped of their passports, and coerced into targeting fellow Indians through investment scams and social media fraud.
Reports estimate that between January 2022 and May 2024, nearly 30,000 Indians remain unaccounted for, with scams resulting in significant financial losses.
The Indian government, in collaboration with Southeast Asian authorities, is actively working to rescue and repatriate victims. They are also issuing public warnings to prevent further exploitation.
Vietnamese authorities have repeatedly issued warnings as well. Nguyen Van Dinh, Deputy Director of the Ministry of Public Security’s Cybersecurity Department, stated, “We urge citizens to remain vigilant and thoroughly verify any investment involving virtual currencies, as fraudsters are increasingly exploiting digital assets to deceive investors.”
The Hanoi City Police Department emphasized that while cryptocurrency remains a growing topic of interest in Vietnam, the public must stay informed and be cautious of extravagant promises that lack credible backing.
