Thomas Daniels
Authorities in Vietnam have uncovered a cryptocurrency scheme that scammed 100 businesses and more than 400 individuals out of almost $1.17 million. The general director and seven accomplices of a corporation that is loosely translated as “Million Smiles” allegedly planned the scheme. They enticed victims with the promise of remarkable returns on a bogus token called the Quantum Financial System (QFS) coin.
The QFS coin was promoted by the criminals as being supported by assets and treasures that had supposedly been kept for centuries by old family dynasties. Additionally, they offered cash support for projects without collateral or interest payments, luring investors with access to a private financial environment.
According to investigations, these statements were completely untrue. The scope of the deception became evident after police raided the company’s headquarters and confiscated important evidence, such as computers and documents, revealing that the QFS coin had no underlying assets.
Authorities stopped attempts to spread the hoax soon before a planned seminar that was aimed at 300 possible investors. Businesses contributed up to 39 million dong ($1,350) each coin, while victims invested between 4 and 5 million dong (about $190) each. To increase its legitimacy, the fraudulent scheme invested 30 billion dong ($1.17 million) in opulent office buildings in posh areas.
This event is Vietnam’s second big crypto-related bust of the quarter. Police broke up a romantic fraud network in October that deceived victims by utilizing a phony investment app called “Biconomynft.” The tendency of bitcoin fraud keeps getting worse on a global scale.
A Chinese-run scam resulted in the seizure of more than 61,000 Bitcoin by UK officials in January. More recently, two British nationals were charged with using fraudulent cryptocurrency schemes to scam investors out of £1.5 million.
According to a September FBI analysis, investment scams accounted for 71% of losses from crypto-related fraud in 2023. Vigilance is necessary as these programs get increasingly complex. Before investing in cryptocurrencies, experts advise people and companies to perform thorough due research.
