The Hanoi City Police Department in Vietnam prevented 300 potential victims from investing in an elaborate crypto scam that had already defrauded 30 billion Vietnamese dong ($1.17 million) from about 100 businesses and 400 individuals.

Hanoi police apprehended individuals connected to Million Smiles, a company that orchestrated an illegal and fraudulent crypto investment scheme targeting Vietnamese citizens, according to VTV, the national television broadcaster of Vietnam.

Million Smiles promoted an in-house cryptocurrency, QFS, or Quantum Financial System, using deceptive advertising that linked it to ancestral treasures and spiritual claims.

In addition to promising unrealistic returns, the company falsely claimed that owning QFS would allow individuals and businesses to access a financial ecosystem with benefits like funding without collateral or interest.

Foiling the elaborate crypto scam

Law enforcement reportedly initially intercepted Million Smiles’ plan to host a meeting with 300 customers to further promote QFS. The fraudsters would pursue individuals to invest roughly 4–5 million dong (roughly $190) and up to 39 million dong ($1,350) for businesses in such meetings. 

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Hanoi city police department raided Million Smiles headquarters. Source: VTV

Police raided the company’s headquarters, confiscating documents, computers and other materials. Subsequent investigations revealed that the QFS token was fictitious and not recognized under Vietnamese law.

Related: Vietnam releases blockchain strategy, aims for regional leadership

Vietnam is not a safe haven for crypto fraud

The Vietnamese authorities have a strong track record of crypto crackdowns. In October, a provincial Vietnam police force arrested five individuals connected to an elaborate crypto scam network led by off-shore bad actors .

On Oct. 4, police from Nghe An, a Vietnamese province bordering Laos and the Gulf of Tonkin, dismantled a Laos-based scam ring linked to fraudulent wire transfers. The scammers were led by off-shore individuals specializing in pig-butchering and crypto investment scams.

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Members of the Vietnamese crypto scam ring. Source: Thanh Nien

One of the scammers, who posed as a woman, gained the trust of a man from Ho Chi Minh City. The victim was eventually deceived into investing in “Biconomynft,” a fake app that promised exorbitant returns. Over several months, the scammer stole more than 17.6 billion dong ($700,000) from the victim.


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