On August 27, the Lao Cai Provincial Police, in coordination with the High-Tech Crime Prevention and Control Department and the Criminal Police Department of the Ministry of Public Security, successfully cracked down on a large-scale “Violation of regulations on multi-level marketing business” and “Using computer networks, telecommunication networks, and electronic devices to appropriate assets” in the form of mobilizing investments in virtual cryptocurrencies. The operation involved raids and searches at multiple locations across Vietnam, including Lao Cai, Hanoi, Ho Chi Minh City, and Gia Lai.
Prior to the operation, in June 2025, the Lao Cai Provincial Police detected a group of individuals organizing conferences in the province with the intention of persuading local residents to invest in non-existent virtual currencies, indicating potential violations of multi-level marketing regulations and electronic asset appropriation.
The group of suspects involved in the recently busted scam.
Recognizing the magnitude of the scam and its nationwide reach, the Director of the Lao Cai Provincial Police instructed the establishment of a specialized task force to focus on dismantling the operation. On August 24, nearly 100 officers from the Provincial Police, in collaboration with the High-Tech Crime Prevention and Control Department and the Criminal Police Department, conducted simultaneous raids at various locations across Vietnam.
The operation resulted in the arrest of 25 individuals, including the masterminds and key members of the scam. Initial investigations revealed that the suspects had illegally transacted tens of thousands of billions of Vietnamese dong. The police have successfully frozen accounts and seized assets worth over 400 billion Vietnamese dong.
During interrogations, the suspects confessed to creating apps and websites promoting a non-existent virtual currency and enticing unsuspecting individuals to invest real money in it. They also admitted to employing a multi-level marketing scheme, encouraging investors to recruit more people to earn commissions. However, the suspects did not allow investors to withdraw their initial investments, effectively appropriating their funds.
The Lao Cai Provincial Police are continuing their investigations to fully uncover the extent of the criminal activities and bring the perpetrators to justice.
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On August 28th, the Lao Cai Provincial Police, in collaboration with functional units of the Ministry of Public Security, announced the successful bust of a nationwide financial fraud ring involving a cryptocurrency pyramid scheme. In the initial stages of the operation, authorities detained 25 individuals and seized assets worth over 400 billion VND.
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