The Crypto Conundrum: Virtual Money, Real Losses

In late February 2025, numerous social media groups and pages were flooded with posts and advertisements about Pi Network, a form of cryptocurrency. The excitement among those invested in this “currency” was particularly heightened as Pi Network was listed on several cryptocurrency exchanges. Many people shared their dreams of becoming millionaires and striking it rich on social media.

However, authorities and experts have repeatedly issued warnings about the risks of investing in Pi Network and cryptocurrencies in general. Dr. Dang Minh Tuan, Chairman of the Vietnam Blockchain Alliance, pointed out the opaque nature of Pi Network, stating that it is a project lacking transparency. He noted that individuals and organizations are overhyping this cryptocurrency with the hope that it will become the most widespread “currency” globally, but in reality, most countries do not legally recognize it.

The Hanoi Police also issued a warning about Pi Network in early March 2025, informing the public that some individuals might exploit this cryptocurrency to engage in illegal activities. These could include creating fake Pi coins, fundraising scams, and illegally collecting user data. Additionally, there is a risk of unauthorized access to facilitate fraud and theft of assets or cryptocurrencies during Pi Network transactions.

Unlike traditional banking systems, once digital assets or cryptocurrency transactions are stolen, the chances of recovery are slim to none. Anyone considering investing in cryptocurrencies must be aware of this significant risk and the possibility of losing their real-world assets.

In recent years, several cryptocurrency exchanges have collapsed due to cyber-attacks, causing billions of dollars in losses for traders. The most recent example was on February 21, when the Bybit exchange was hit by a severe cyber-attack, resulting in a loss of $1.5 billion. Other notable cases include the disappearance of billions of dollars in digital Ton coins after the arrest of Telegram’s CEO in 2024. These incidents serve as stark reminders of the dangers associated with investing in assets that lack legal protection.

In Vietnam, cryptocurrencies, including Pi, are not legally recognized as assets. Consequently, fraudulent activities involving cryptocurrency transactions are challenging to address and prosecute. According to the State Bank of Vietnam, cryptocurrencies are not considered a means of payment. As such, individuals or organizations using cryptocurrencies, including Pi, for payment transactions are subject to fines under Decree 88/2019/ND-CP, amended at Point d Clause 15 Article 1 Decree 143/2021/ND-CP, with penalties ranging from 50 million to 100 million VND. More severe violations may even result in criminal liability under Article 206 of the Penal Code for “violating regulations on banking activities and other activities related to banking.”

Investors in this type of asset are essentially gambling, as they are not protected by the law and could end up with “money lost, trouble gained.”