Vietnamese police have uncovered one of the country’s largest cryptocurrency scams, arresting five suspects who allegedly defrauded investors out of nearly 10 trillion VND (around $400 million).
The scam, which operated under a fake digital currency platform named Matrix Chain (MTC), lured more than 138,000 people with false promises of high returns and referral-based rewards.
After months of coordinated surveillance, the suspects were arrested across multiple provinces, and assets connected to the operation have been seized.
How the MTC scam exploited multi-level marketing tactics
The fraud operated through a fake cryptocurrency exchange developed for approximately 20,000 Tether (USDT), equivalent to about 520 million VND.
The group, led by Nguyen Quoc Hung, created a system that mimicked legitimate crypto exchanges but functioned more like a multi-level marketing (MLM) scheme.
Participants were enticed with guaranteed returns and additional income if they recruited new members.
To join the platform, users were required to pay a one USDT “platform fee” using the SafePal wallet system.
This small initial amount made the platform appear legitimate while helping the group rapidly onboard thousands of users.
Over time, as more people were pulled in and asked to reinvest or recruit others, the total amount deposited on the platform ballooned to 394 million USDT—roughly 10 trillion VND.
Laundering funds through real estate and dummy wallets
Authorities said that more than half of the stolen funds were used for personal expenses by the perpetrators.
The remainder was allocated for marketing campaigns, hosting events, and paying out commissions to local promoters who helped expand the scam.
These promotional tactics played a crucial role in giving the platform an illusion of legitimacy.
Investigators revealed that the group laundered a significant portion of the funds by purchasing real estate in northern Vietnam.
Transactions were spread across multiple wallets registered under various fake identities in an effort to hide the flow of money.
Digital assets, bank accounts, and properties tied to the group have been seized as evidence, and the investigation is still ongoing.
A landmark case for Vietnam’s cybercrime enforcement
The case marks a major success for Vietnam’s cybersecurity forces.
Led by the Dong Nai Provincial Police, with support from the Ministry of Public Security and regional authorities, the operation took nearly 200 days of careful monitoring and data gathering.
The arrests came in a series of raids across several provinces and have been timed with the 80th anniversary of the People’s Public Security Force—amplifying its symbolic importance as a victory in the fight against cyber-enabled fraud.
Investigators believe additional suspects may have been involved and are working to identify other members of the scam network.
Tracing the flow of stolen funds and identifying potential victims remains a priority as part of the ongoing probe.
The Matrix Chain case highlights the persistent threat of crypto-related fraud in Southeast Asia.
It also underscores the importance of public education and tighter regulation, as well as the increasing sophistication of scam networks that exploit digital finance for illicit gain.
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