The police dismantled a cryptocurrency scam ring involving Paynet Coin, seizing 800 billion VND in cash.

On the morning of August 11, Colonel Hoàng Tùng, Head of the Economic Security Department (PC04) of the Phú Thọ Provincial Police, announced that the authorities had just dismantled a large-scale fraud ring related to virtual currency.

Prosecution of the case and the defendants

The investigation agency has officially initiated legal proceedings and prosecuted 20 defendants for violations of regulations on multi-level marketing, as well as using computer networks and electronic means to appropriate property.

Previously, through operational work, the Security Department (PA04) discovered suspicious activities violating regulations on illegal multi-level marketing by a group of individuals in Ho Chi Minh City.

Operating Method

This group of individuals has used websites like FMCPAY.com and AFF2024.com to register and activate investment packages for participants under a multi-level model. They pay "commissions" to those who refer others, using the money from new participants to pay previous participants.

A month ago, the Phu Tho Provincial Police coordinated with various departments of the Ministry of Public Security to simultaneously carry out investigation measures at multiple locations in Phu Tho Province, Hanoi, and Ho Chi Minh City.

History of Formation and Scale

The initial investigation results show that since 2021, Nguyễn Văn Hạ (45 years old, residing in Gia Lai) along with accomplices has programmed the creation of a cryptocurrency called Paynet Coin (PAYN) operating on the Blockchain platform, building a reward system based on a pyramid scheme.

Participants will receive interest rates ranging from 5% to 9% per month, depending on the investment package they choose. The PAYN currency is used to reward investors, and they can exchange this currency for the cryptocurrency USDT on the FMCPAY.com exchange, from which it can be converted into USD or VND.

The group of individuals also provided misleading information that this exchange has been registered in the US and that the cryptocurrency can be used to book flights and hotels, although no agents accept payments using PAYN.

Scam tactics

To expand the system and attract more participants, Ha has cooperated with Phan Viet Lap (42 years old, residing in Ho Chi Minh City) and many other individuals to organize seminars and groups aimed at developing the investment model. Thanks to sophisticated tactics, this group has lured thousands of participants, with the total amount raised reaching billions of USD.

Investigation results and seized assets

Major General Nguyen Minh Tuan, Director of the Phu Tho Provincial Police, stated that this is the largest cryptocurrency fraud case in the country. Unlike many cases that only deal with the "middle players", the Phu Tho Provincial Police force has thoroughly dismantled the operation, from the ringleaders to those in the lowest roles.

The seized assets in the case are very large, estimated at up to several trillion dong. Among them, the cash seized is about 800 billion dong, along with real estate and many other valuable assets. Mr. Tuan also stated that the authorities would cooperate to return the assets to the victims.

Call for Cooperation and Warning

The Phu Tho provincial police are continuing to expand their investigation, searching for related individuals, while also calling on participants to come forward to receive leniency from the law.

Authorities also warn that citizens need to be more vigilant against invitations to invest in cryptocurrencies and multi-level marketing, in order to avoid falling into the traps of sophisticated scam networks.

Mr. Giáo