The Hanoi City Police Department in Vietnam recently intervened to prevent a significant cryptocurrency scam that threatened to ensnare 300 potential victims. The scam, orchestrated by a company known as Million Smiles, had already defrauded around 100 businesses and 400 individuals of 30 billion Vietnamese dong (approximately $1.17 million).
Scheme Details and Police Intervention
Million Smiles promoted a so-called in-house cryptocurrency named QFS, or Quantum Financial System. The company utilized misleading advertising that associated the digital currency with ancestral treasures and spiritual claims, promising unrealistic financial returns. It falsely assured that QFS ownership would grant access to a lucrative financial ecosystem, offering benefits such as funding without collateral or interest.
The police intervention came just as Million Smiles was preparing to host a large-scale meeting to recruit additional investors. Participants were being persuaded to invest amounts ranging from 4–5 million dong (about $190) for individuals, to up to 39 million dong ($1,350) for businesses. During a raid on the company’s headquarters, authorities seized critical evidence including documents and computer equipment, which further confirmed the fraudulent nature of the QFS token, a cryptocurrency unrecognized under Vietnamese law.
This event is part of Vietnam’s broader efforts to combat cryptocurrency-related fraud. In October, police in Nghe An province arrested five individuals linked to an international crypto scam network operating from Laos. This network was involved in pig-butchering scams—a form of fraud where victims are ‘fattened up’ with small gains before being defrauded of significant sums. In one notable case, a scammer posing as a woman defrauded a Ho Chi Minh City man of more than 17.6 billion dong ($700,000) through a deceptive investment app called “Biconomynft.”
Author’s Opinion
The successful intervention by the Vietnamese police in the Million Smiles case underscores the critical importance of vigilance in the cryptocurrency sector. This incident highlights how scammers exploit the allure of high returns and advanced technological claims to lure unsuspecting investors into fraudulent schemes.
Investors must exercise caution and perform due diligence before engaging in any crypto-related investments, especially when promised returns seem too good to be true. Regulatory bodies and law enforcement agencies play a pivotal role in monitoring and acting against such fraudulent activities to protect consumers and maintain the integrity of the financial market.
As the digital currency landscape continues to evolve, both investors and regulators must remain alert to the innovative tactics used by fraudsters seeking to exploit the burgeoning interest in cryptocurrencies. The collaborative efforts of government authorities, regulatory bodies, and informed investors are essential in fostering a safe and stable digital finance environment.
Featured image credit: flatart via Flickr
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