Vietnam Shuts Down $1 Million Cryptocurrency Scam: Hundreds Rescued from Fraud

Vietnamese authorities have successfully dismantled a fraudulent cryptocurrency scheme involving QFS tokens, which swindled over $1 million from unsuspecting individuals and businesses. Discover how aggressive marketing, fake promises, and spiritual claims duped victims, and learn about the police intervention that stopped the scammers in their tracks. This case highlights the importance of vigilance in the crypto world.

Vietnam’s Crackdown on a $1 Million Cryptocurrency Scam

Vietnamese authorities have successfully dismantled a significant cryptocurrency scam, preventing further financial losses for hundreds of individuals and businesses. The fraudulent operation, orchestrated by a company named ‘Million Smiles,’ had already defrauded approximately $1.17 million (30 billion VND) from around 400 individuals and 100 businesses.

The Deceptive Scheme: QFS Tokens

The scam centered around a fictitious cryptocurrency called QFS (Quantum Financial System). Promoted as a revolutionary financial ecosystem, QFS tokens were advertised as an entry point to substantial wealth, offering access to collateral-free funding and exaggerated returns. Victims were persuaded to invest amounts ranging from 4–5 million VND ($190) per individual to 39 million VND ($1,350) per business.

Aggressive Marketing Tactics

Million Smiles employed aggressive marketing strategies, including false promises of financial freedom and spiritual claims tied to ancestral treasures, to lure investors. They created an illusion of legitimacy by establishing offices in luxurious villas and prominent business districts, financed entirely through investor contributions.

Coordinated Police Intervention

Authorities acted swiftly to prevent further damage. The Hanoi City Police uncovered plans for Million Smiles to host a promotional conference at Bao Son Paradise, Hanoi, on December 24, 2024, targeting over 300 participants. The Economic Security Department intervened hours before the conference, detaining the General Director of Trieu Nu Cuoi Company (the parent company of Million Smiles) and seven key individuals linked to the scam. They seized crucial evidence, including financial records, promotional materials, and computers, revealing the extent of the fraudulent operation.

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Victims’ Stories

One victim, a resident of Yen Bai who relied on forest farming for his livelihood, invested 39 million VND in QFS tokens, believing in the promise of wealth. Months later, he received nothing in return. This story mirrors hundreds of others who placed their trust in Million Smiles only to face financial devastation.

Conclusion

This crackdown highlights the importance of vigilance and skepticism when dealing with investment opportunities, especially in the cryptocurrency sector. Authorities continue to monitor and combat fraudulent schemes to protect the public from financial harm.

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