Vietnam police dismantle $1m QFS crypto scam claiming ties to ancient treasures

Authorities in Vietnam have busted a massive cryptocurrency scam that defrauded more than 400 local residents and 100 businesses of approximately $1.17 million.

Hanoi police have arrested its chief executive and seven key suspects involved in a cryptocurrency fraud scheme involving the sale of a fake token created and operated by a company whose name means “Million Smiles”, local media reported.

Scammers promised exorbitant returns on investments in Quantum Financial System money, which they claimed was backed by assets and treasures said to have been preserved for hundreds of years by ancient family dynasties.

Victims were also deceived with promises of access to a private financial ecosystem where they would receive capital support for business ventures without the need for collateral or interest payments.

The investigation, of course, revealed that these claims were false and, as with similar scams, the QFS coin was not backed by anything. During the raid on the company’s headquarters, police seized documents, computers and other evidence, revealing the extent of the fraud.

Police also intervened just before a planned conference of 300 potential investors, preventing scammers from further promoting the QFS coin and attracting more victims.

The program targeted individuals with investment amounts ranging from 4-5 million dong (about $190) and businesses with demand up to 39 million dong (about $1,350) per cryptocurrency.

Authorities estimate that while active, the scheme may have defrauded 100 businesses and nearly 400 people out of 30 billion Vietnamese dong ($1.17 million). Illegal funds were used to acquire luxury office spaces in luxury villa areas, creating an illusion of legitimacy to attract more victims.

This was the second major crypto-related debacle in Vietnam this quarter. In October, police busted a massive crypto romance scam network that tricked victims into investing in a fake investment app called “Biconomynft.”

Meanwhile, crypto-related investment scam incidents have hit the headlines multiple times this year.

In January, the Metropolitan Police in the United Kingdom seized more than 61,000 Bitcoins from Chinese fraudsters running dubious schemes. More recently, two British men were sued for their involvement in a £1.5 million crypto investment scam.

Investment scams accounted for 71% of total losses from crypto-related frauds and scams in 2023, according to a Sept. 9 report from the Federal Bureau of Investigation.

As investment fraud schemes become increasingly complex and deceptive, it is more important than ever for individuals and businesses to stay informed, exercise caution, and thoroughly research opportunities before committing.