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 victim to an elaborate cryptocurrency scam. The scam had already defrauded approximately 100 businesses and 400 individuals of 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 through aggressive promotion of its in-house cryptocurrency, QFS (Quantum Financial System), using large-scale seminars, social media campaigns, and influencer endorsements.
The company portrayed QFS as a spiritually supported asset connected to ancestral treasures, expanding its reach by utilizing community gatherings and religious events to instill trust and urgency among potential investors.
The company falsely claimed that holding QFS coins would provide access to a financial ecosystem that offers benefits such as interest-free capital and participation in profitable ventures.
Million Smiles’ Crypto Scam: How Vietnamese Police Saved Potential Victims
The fraudulent activities of Million Smiles began to unravel when the Hanoi police detected suspicious activities by the company.
Trieu Nu Cuoi, the legal entity behind Million Smiles, had planned a large conference on December 24, 2024, at Bao Son Paradise in An Khanh Commune, Hoai Duc District, Hanoi, with the intention of targeting 300 additional 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 conducted an urgent raid on the company’s headquarters, confiscating documents, computers, and promotional materials.
Investigations revealed that the QFS tokens were fictitious and not recognized by Vietnamese law.
Million Smiles managed to deceive victims from rural areas like Yen Bai by exploiting cultural beliefs and promising future wealth. Individuals from these areas invested significant amounts of money in the hopes of achieving financial freedom.
The mastermind behind the scam carefully built a credible image by renting luxurious villas and organizing high-profile events.
Victims were convinced that hidden treasures supported QFS and that purchasing the coin would secure their place in an exclusive economic ecosystem.
However, as authorities discovered, the company’s leadership had no actual assets or backing for their claims.
Vietnam’s Ongoing Battle Against Crypto Fraud
Vietnamese authorities are actively cracking down on Million Smiles as part of a broader effort to combat the rising trend of cryptocurrency-related fraud.
This recent case follows a series of high-profile arrests, including the discovery in October 2024 of an elaborate cryptocurrency fraud and cybercrime network in Southeast Asia.
Thousands of Indian citizens are being enticed by false job offers that trap them in cybercrime networks in Southeast Asia, where they are coerced into participating in cryptocurrency fraud, phishing, and online scams.
Many victims are held in guarded compounds, deprived of their passports, and forced to target fellow Indians through investment scams and social media fraud.
Reports estimate that nearly 30,000 Indians remain unaccounted for between January 2022 and May 2024, with significant financial losses resulting from scams.
The Indian government, in collaboration with Southeast Asian authorities, is actively working to rescue and repatriate victims, while also issuing public warnings to prevent further exploitation.
Vietnamese authorities have repeatedly issued warnings, with Nguyen Van Dinh, Deputy Director of the Ministry of Public Security’s Cybersecurity Department, stating, “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 although cryptocurrency is a growing topic of interest in Vietnam, the public must stay informed and be cautious of extravagant promises that lack credible support.