Vietnam police arrest five in $385M crypto scam, luring thousands via Telegram with a fake exchange promising high returns.
Telegram was prohibited in Vietnam this week due to the prevalence of illicit activity on the platform. The government is committed to establishing a crypto center but is also prepared to confront the industry’s less desirable elements.
Fraudulent Exchange in Vietnam
Currently, the crypto market is rife with diverse schemes, ranging from sophisticated hacking operations to a surge in violent crimes. Nevertheless, the occurrence of fraudulent exchanges is relatively uncommon, with the majority of the most significant instances occurring several years ago.
This fraud method was revived by a team in Vietnam with Matrix Chain (MTC), an entirely fraudulent crypto exchange:
“Around the beginning of 2024, Dong Nai Provincial Police discovered a group of subjects operating fraudulently to appropriate assets on cyberspace, with the trick of setting up a virtual currency exchange (MTC – Matrix Chain), luring victims in provinces and cities across the country to participate as virtual currency investors,” a government press release stated.
The exchange’s proprietors were apprehended in a single operation by the Ministry of Public Security of Vietnam, as well as other federal law enforcement agencies and numerous local police departments.
They identified five primary ringleaders of this $385 million crypto crime operation, all of whom were Vietnamese citizens.
The group advertised the fake exchange in Telegram and Facebook conversations throughout Vietnam’s crypto community to operate it. They sold worthless tokens and collected user fees by running MTC over PancakeSwap.
They amassed nearly 395 million USDT in total. Vietnam’s government prohibited Telegram this week, attributing the decision to illicit activity on the platform.
Despite Vietnam’s designation as a crypto hub, this saga of fake exchanges serves as a reminder of the government’s ability to implement crackdowns.
Despite its efforts to develop friendly regulations and consult with prominent entrepreneurs, Vietnam is unafraid to label large projects as scams.
Given the recent fraudulent exchange, it is understandable that Vietnam may require these severe measures. Because of its effective Telegram advertising, tens of thousands of Vietnamese citizens invested in MTC. Their funds were subsequently allocated to five criminals to purchase sports vehicles, property, and other extravagant items.
