Vietnamese police have discovered one of the country’s largest cryptocurrency scams, arresting five suspects who would have frauded investors over nearly 10 Billions of VND (around $ 400 million).
The scam, which operated under a false digital currency platform called Matrix Chain (MTC), attracted more than 138,000 people with false promises of high yields and rewards based on orientation.
After months of coordinated surveillance, the suspects were arrested in several provinces and the assets linked to the operation were seized.
How the MTC scam has exploited marketing tactics on several levels
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The fraud worked by a false exchange of cryptocurrency developed for around 20,000 ties (USDT), which is equivalent to around 520 million VNDs.
The group, led by Nguyen Quoc Hung, created a system that imitated the exchanges of legitimate crypto but worked more like a marketing scheme on several levels (MLM).
Participants were attracted to guaranteed yields and additional income if they recruit new members.
To reach the platform, users had to pay a USDT “platform fees” using the SafePal portfolio system.
This initial quantity made the platform legitimate while helping the group on board thousands of users.
Over time, while more and more people have been attracted and asked to reinvest or recruit others, the total amount deposited on the platform has increased USDT 394 million, or 10 Billions of VND.
Bleaching fund by real estate portfolios and models
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Authorities have said that more than half of the stolen funds were used for the personal expenses of the authors.
The rest was allocated to marketing campaigns, organizing events and paying commissions to local promoters who helped extend the scam.
These promotional tactics played a crucial role in giving the platform an illusion of legitimacy.
Investigators revealed that the group had laundered a large part of the funds by buying real estate in northern Vietnam.
The transactions were spread over several portfolios recorded under various false identities in order to hide the flow of money.
Digital assets, bank accounts and the groups related to the group have been seized as proof, and the survey is still underway.
A historical case for the application of Vietnam cybercrime
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The case is a major success for the cybersecurity forces of Vietnam.
Directed by the provincial police of Dong Nai, with the support of the Ministry of Public Security and regional authorities, the operation took nearly 200 days of meticulous surveillance and data collection.
The arrests occurred in a series of raids in several provinces and were timed with the 80th anniversary of the people of public security of the people – amplifying its symbolic importance as a victory in the fight against cyber -compatible fraud.
Investigators believe that additional suspects may have been involved and work to identify other members of the SCAM network.
Tracing the flow of stolen funds and the identification of potential victims remain a priority within the framework of the current probe.
The matrix chain affair highlights the persistent threat of fraud linked to crypto in Southeast Asia.
He also underlines the importance of public education and stricter regulations, as well as the growing sophistication of fraud networks that exploit digital finance for an illicit gain.
