The Crypto Swindle: How Scammers Stole Tens of Billions in a Virtual Heist

On December 17, the Criminal Police Department of Binh Thuan Provincial Public Security said that it had just received a report from a citizen about being defrauded of more than 12 billion VND when investing in virtual currency through the Coinbase exchange and Coinbase Wallet e-wallet.

According to the victim, at the beginning of 2024, a fake Facebook account under the name of Dinh Thai Chau befriended the victim and enticed them to invest in virtual currency through the Coinbase platform. The scammers then directed the victim to communicate via the Telegram application to avoid traceable digital footprints, using enticing phrases such as high profits, safety, and quick wealth accumulation to lure the victim into investing money as per their instructions and guidance.

Subsequently, Dinh Thai Chau deceived the victim into installing an additional link, http://tradedefi.link/#/home, into their Coinbase Wallet e-wallet to supplement certain functions for virtual currency investment, including AI quantum investment contracts, loans, deposits, and withdrawals. However, all withdrawal and deposit transactions had to go through the customer support system, which was part of the scammers’ network.

In this case, the victim was enticed to engage in virtual currency lending for investment purposes, which involved pledging a certain amount of money as collateral in their account to obtain loans and invest in various virtual currencies. However, when the victim attempted to withdraw their funds, the Coinbase exchange cited reasons such as “paying taxes according to the laws of the United States” to continue the deception, and ultimately, the victim was unable to retrieve their money. In total, the victim made multiple transactions, resulting in a loss of more than 12.5 billion VND.

Previously, the Department of Information Security (Ministry of Information and Communications) also reported that a woman in Hanoi had been defrauded of more than 9 billion VND when investing in virtual currency online. Specifically, Ms. T (Hanoi) befriended a Facebook account named Nguyen Thi Thuy Dung through social media. After some time, this person enticed Ms. T to invest in virtual currency. Attracted by the appealing advertisements from her Facebook friend, Ms. T created an account and transferred up to 5 billion VND for investment purposes. After a while, the displayed interest amounted to 350,000 USD (equivalent to 9 billion VND). However, when Ms. T wanted to withdraw the interest, the other party demanded that she pay 20% of the total account balance (equivalent to 1.8 billion VND) and 15% for insurance (equivalent to 1.6 billion VND) within five hours, along with 3% (equivalent to 360 million VND) in fees for quick money transfer to her personal account. Ms. T then paid an additional 1.2 billion VND but still could not withdraw her money.

In Tay Ninh, the police recently received a report from a 62-year-old man, Mr. T., who claimed to have been defrauded of more than 3.4 billion VND through a similar scheme. Mr. T befriended a Facebook account named QN, and after some time, they developed romantic feelings for each other. Once trust was established, “QN” persuaded Mr. T to invest in buying and selling USDT digital currency on the OKX exchange. “QN” then convinced Mr. T to withdraw all his money from OKX and invest it in UTSpeed, promising higher interest rates of 3-4%/day.

With the enthusiastic guidance of “QN” and the customer support staff, Mr. T. made 14 transactions, totaling 3.4 billion VND in investments. However, he later discovered that he could not withdraw his money. When he contacted “QN” and the customer support team, he was informed that the accounts did not exist.

In October, a woman in Da Nang also fell victim to a similar scam and lost 3 billion VND. In early September 2024, while using Facebook, Ms. L.T.N (40 years old, residing in Da Nang) received a friend request from an unknown Facebook account. The person introduced themselves as a Vietnamese entrepreneur currently working in Taiwan. After some time, they gained Ms. N.’s trust and invited her to invest in virtual currency through a website. Ms. N. initially invested 12 million VND and was able to withdraw 16 million VND. The second time, she invested 30 million VND and withdrew 58 million VND. Encouraged by the apparent ease of investment and the substantial profits, along with the entrepreneur’s persuasion, Ms. N. invested an additional 180 million VND and was notified of a significant win. However, she could not withdraw her money.

At this point, the system presented various reasons and asked her to deposit more money before she could withdraw her profits, citing personal income tax, account verification fees, money laundering guarantees, etc. Overwhelmed by greed and manipulated by the scammers, Ms. N. continuously transferred more than 3 billion VND to them before realizing she had been scammed.

The scammers did not stop there. They used another Facebook account named “Lawyer Huy” to approach Ms. N. and claimed to have connections with the Ministry of Public Security and could help retrieve her lost funds. The scammers requested “case establishment fees” and “investigation fees,” and due to her panic and lack of knowledge, Ms. N. fell victim to their deception once again, losing an additional 400 million VND.

These cases illustrate the diverse approaches used by scammers to target their victims, ranging from online advertisements to impersonating successful entrepreneurs and establishing long-term relationships. They also employ tactics to avoid physical meetings, claiming to be overseas or on business trips, and even falsifying their location information to gain trust. Additionally, victims are often added to private groups on social media platforms (Zalo, Telegram…) where fake “experts” and fellow investors post fake success stories to encourage further investment. When victims express doubts or hesitation, these fake accounts pressure them to transfer money quickly to continue the scheme.

To avoid falling prey to such scams, authorities advise the public to be vigilant and refrain from investing or trading on virtual currency exchanges, digital currency websites, or investment applications, especially those promising high returns or attractive opportunities. It is crucial to thoroughly research any investment platform, paying close attention to those with fake or impersonated addresses of legitimate investment entities. Moreover, individuals should be cautious when interacting with strangers online, never sharing personal information or following instructions from unverified sources. It is imperative to avoid contacting social media accounts claiming to offer “fund recovery” or “capital release” services, as these are also scams. In case of fraud, report it immediately to the nearest police station for guidance and handling.

If you come across a potential scam, notify the authorities promptly so they can investigate, prevent, and take legal action against the perpetrators.