Vietnamese Police Foil $1M Crypto Scam, Save 300 Potential Victims
Vietnamese authorities have successfully disrupted a sophisticated cryptocurrency scam that defrauded investors of 30 billion Vietnamese dong ($1.17 million). The crackdown by the Hanoi City Police Department prevented 300 additional potential victims from falling prey to the scheme, which targeted businesses and individuals with false promises of financial gains.
The Million Smiles Scam
The scam was orchestrated by Million Smiles, a company promoting a fraudulent cryptocurrency called QFS (Quantum Financial System). According to VTV, Vietnam’s national broadcaster, the perpetrators used misleading advertisements claiming QFS was tied to ancestral treasures and spiritual significance. They promised unrealistic benefits, including access to a financial ecosystem offering funding without collateral or interest.
The scheme persuaded individuals to invest amounts ranging from 4–5 million dong ($190) for personal accounts to as much as 39 million dong ($1,350) for businesses.
Police Intervention and Raid
Authorities intercepted Million Smiles’ plans to host a promotional event for 300 potential investors. A raid on the company’s headquarters uncovered documents, computers, and other materials that confirmed the fraudulent nature of QFS. Subsequent investigations revealed that the QFS token was fictitious and unrecognized under Vietnamese law.
Vietnam’s Continued Crackdown on Crypto Fraud
Vietnam has demonstrated a strong commitment to combating crypto-related scams. In October, police in Nghe An province dismantled a scam ring connected to offshore actors specializing in fraudulent wire transfers and crypto investment schemes.
One notable case involved a scammer who posed as a woman to deceive a man from Ho Chi Minh City into investing in a fake app called “Biconomynft.” Over several months, the victim was defrauded of 17.6 billion dong ($700,000).
Strengthening Crypto Oversight
Vietnamese authorities have been proactive in addressing cryptocurrency fraud while fostering blockchain innovation. In related developments, the government recently launched a blockchain strategy aimed at becoming a regional leader in the technology. However, scams like the Million Smiles operation underscore the challenges of balancing innovation with consumer protection.
This latest intervention by the Hanoi police highlights the importance of vigilance and robust law enforcement in curbing crypto fraud, reinforcing Vietnam’s stance as a region actively addressing the risks associated with digital currencies.
