Authorities in Vietnam have cracked down on a major cryptocurrency scam, which defrauded more than 400 local residents and 100 companies of nearly $1.17 million.

According to local media, Hanoi police have He was arrested The managing director and seven main suspects involved in a cryptocurrency fraud scheme involving the sale of a counterfeit token created and operated by a company whose name translates to “Million Smiles.”

The scammers promised exorbitant returns on investments in the quantum financial system's currency, which they claimed was backed by assets and treasures said to have been held by ancient family dynasties for hundreds of years.

Victims were also lured with promises of access to an exclusive financial ecosystem, where they would receive capital support for business ventures without the need for collateral or interest payments.

Of course, those claims were false, and the QFS currency, as with... Similar scamsThe investigation revealed that he was not supported by anything. During the raid on the company's headquarters, police confiscated documents, computers and other evidence, revealing the extent of the fraud.

Police were also able to intervene ahead of a planned conference with 300 potential investors, preventing scammers from continuing to promote QFS and attracting more victims.

The scheme targeted individuals with investment amounts between 4-5 million dong (about US$190) and companies with orders of up to 39 million dong (about US$1,350) per coin.

While active, authorities estimate that the scheme may have defrauded 100 companies and nearly 400 individuals out of 30 billion Vietnamese dong ($1.17 million). The illicit funds were used to purchase luxury office space in upscale villa areas, creating the illusion of legitimacy to attract more victims.

This was the second largest cryptocurrency-related collapse in Vietnam this quarter. In October, police Get down A large cryptocurrency romance scam network tricked victims into making investments in a fake investment app called “Biconomynft.”

At the same time, incidents of investment fraud related to cryptocurrencies have occurred Headlines Several times this year.

In January, the UK's Metropolitan Police He took over Over 61,000 Bitcoins from Chinese scammers running suspicious schemes. Recently, there were two men from the UK He was tried For their involvement in a £1.5 million cryptocurrency investment scam.

On September 9th a report According to the FBI, investment scams accounted for 71% of the total losses incurred from cryptocurrency-related scams and scams in 2023.

As investment fraud schemes become more sophisticated and deceptive, it is more important than ever for individuals and businesses to stay informed, exercise caution, and thoroughly investigate opportunities before committing them.