Vietnam Authorities Arrest Five in $400M Crypto Scam Tied to Fake Exchange

Vietnamese police have arrested five people linked to a large-scale cryptocurrency scam that defrauded more than 138,000 victims across the country. Authorities say the group stole nearly 10 trillion VND, or roughly $400 million.

The scam centered on a fake cryptocurrency exchange called Matrix Chain (MTC). It promised quick profits and offered incentives for users to recruit others, similar to a pyramid scheme.

Five Arrested Over $400M Crypto Scam

Police in Dong Nai province led the investigation with support from national and regional forces. After nearly 200 days of surveillance, they launched coordinated raids across multiple provinces and arrested the suspected leader, Nguyen Quoc Hung, along with four others.

Following their arrest, the five suspects were accused of creating a fake crypto platform using software that cost just $20,000 (around 520 million VND). To join the platform, victims were required to pay a $1 fee through SafePal, a cryptocurrency wallet app.

Investigators revealed that the scheme collected roughly $394 million. Over half of that amount was diverted for personal use, while the remainder funded marketing, promotional events, and commissions for local recruiters.

The group allegedly laundered the stolen money through real estate purchases across northern Vietnam. Police discovered that they had used multiple wallets and fake identities to obscure the origin of the funds. Authorities have since seized assets and digital evidence to aid the investigation.

Officials describe the operation as a significant victory against cybercrime. The timing also aligns with the 80th anniversary of the People’s Public Security Force, adding symbolic weight to the arrests.

Crypto Scandals Emerge in Russia and Europe

In a separate incident, former Binance executive and Blum co-founder Vladimir Smerkis has been arrested in Russia on charges of large-scale fraud. Authorities have not released full details, but reports suggest the case may involve earlier projects linked to Smerkis, including The Token Fund and Tokenbox. Both raised millions in crypto but later faded from the public eye.

Meanwhile, a Europe-wide operation in January 2025 resulted in the arrest of 17 individuals accused of operating a crypto-based money laundering network. Investigators say the group handled more than 21 million euros (around $23.5 million) in digital assets for criminal groups based in China and the Middle East.

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