Uncovering a Global Crypto Scam: $Billions Lost as 20 Suspects are Arrested

According to An Ninh Thu Do, the Economic Security Division of Phu Tho Provincial Police has uncovered illegal pyramid scheme operations by a group of individuals in Ho Chi Minh City. The group used websites such as FMCPAY.com and AFF2024.com to register and activate investment packages for participants, offering referral bonuses and instructing them to recruit others under their branch to receive additional rewards. This scheme ultimately defrauded individuals of their money.

On July 15, the Economic Security Division, in collaboration with the Investigative Security Division of Phu Tho Provincial Police, coordinated with the Ministry of Public Security’s departments and Phu Tho Provincial Police’s divisions to simultaneously raid multiple locations in Phu Tho, Hanoi, and Ho Chi Minh City.

Initial investigations revealed that since 2021, Nguyen Van Ha (born 1980, residing in Phu My Bac, Gia Lai) and his accomplices had created a cryptocurrency named Paynetcoin (PAYN) based on blockchain technology and established a pyramid-structured reward system.

Participants who purchased investment packages would receive monthly interest ranging from 5% to 9%, depending on the package level. The perpetrators used PAYN to reward investors, who could then exchange it for USDT and further convert it into USD or VND through the FMCPAY.com exchange.

Furthermore, the perpetrators deceived participants and organizers by claiming that the exchange was registered in the US and that the cryptocurrency could be used to book flights and hotel rooms. However, no travel agencies or hotels accepted PAYN as a form of payment.

To expand their scheme, Ha and his associates, including Phan Viet Lap (born 1983, residing in Bay Hien Ward, Ho Chi Minh City), organized seminars and networking events to attract more investors. Through these deceptive tactics, they managed to entice thousands of participants, amassing billions of dollars in investments.

The Phu Tho Provincial Police’s Investigative Security Agency has initiated legal proceedings and charged 20 defendants with “Violation of regulations on multi-level sales” and “Using computers, electronic means to appropriate assets” under Articles 217a and 290 of the Criminal Code.

During the operation, law enforcement authorities seized cash, foreign currency, and real estate assets worth thousands of billions of VND.

The task force is continuing to gather evidence to expand the investigation, track down other involved individuals, and ensure the recovery of assets for victims nationwide. Additionally, they urge any individuals or entities associated with this case to come forward and cooperate with the Investigative Security Agency to receive lenient treatment.