Red alert regarding cryptocurrency investment.

Authorities and experts are continuously issuing red flags about the risks of investing in cryptocurrencies.

Authorities and experts are continuously issuing red flags about the risks of investing in cryptocurrencies.

Investors need to thoroughly understand the technology and concepts related to cryptocurrencies and exercise caution to avoid being exploited or scammed by malicious individuals.

Repeated warnings

Recently, many posts and comments about the Pi Network cryptocurrency have appeared on social media groups and websites. In particular, the listing of Pi Network on several cryptocurrency exchanges has created excitement among the Pi mining community. Two weeks after being listed on exchanges, the price of Pi currently fluctuates around $1.8 USD (approximately 46,000 VND) and at one point even reached $3 USD (approximately 76,000 VND).

Hanoi police have issued a warning about the risks of investing in and trading Pi Network cryptocurrency. According to Vietnamese law, cryptocurrencies in general, and Pi in particular, are not considered assets. Therefore, incidents, issues, and disputes arising from cryptocurrency and Pi transactions are very risky and difficult to protect or resolve under the law.

Some individuals may exploit the Pi cryptocurrency to commit illegal acts, such as creating counterfeit Pi cryptocurrencies, raising capital for the purpose of fraud and misappropriation of assets. Furthermore, malicious actors may create fake Pi Network applications to illegally collect user data and gain unauthorized access for the purpose of fraud and misappropriation of assets or cryptocurrency in Pi cryptocurrency transactions.

In addition, the police in Nghe An, Nam Dinh, Dong Nai , Bac Lieu provinces, and others have also issued warnings about online scams. These scammers often impersonate government officials, luring people into investing in cryptocurrencies or impersonating trading platforms to steal their money.

These warnings were issued after a series of cryptocurrency-related scams were busted by the police.

Most recently, Hanoi police dismantled a transnational cryptocurrency fraud ring. The number of victims reached over 2,000, with a total amount exceeding 2 trillion VND. Prior to this, Hanoi police initiated an investigation into the case of Trieu Nu Cuoi Company, which lured approximately 100 businesses and nearly 400 individuals into purchasing the QFS quantum cryptocurrency, worth hundreds of billions of VND…

The Nghe An Provincial Police also dismantled a transnational fraud ring operating in the "Golden Triangle" (Bokeo province, Laos). This criminal group mainly impersonated successful businessmen, luring people into investing in cryptocurrencies they created. Many victims fell into the trap, with one victim losing 18.6 billion VND.

According to a survey by the National Cybersecurity Association, in 2024, one in every 220 users was a victim of online fraud (a rate of 0.45%). The total losses caused by online fraud in 2024 are estimated to reach VND 18,900 billion. Regarding cryptocurrency fraud, according to Chainalysis (a US blockchain analytics company), initial estimates suggest that fraudulent e-wallets earned $9.9 billion in 2024, and this figure is predicted to reach a record high of $12.4 billion in 2025. The frauds mainly originate from large-scale fraud centers in Southeast Asia and show signs of increasingly dispersed operations.

Beware of the "cryptocurrency cheese."

According to Mr. Dang Minh Tuan, Chairman of the Vietnam Blockchain Alliance, investing in cryptocurrencies carries many risks because in Vietnam, cryptocurrencies lack legal status and there is no regulatory body to control fraud and market manipulation; in other words, they are not protected by law. Investors need to thoroughly understand the technology and have the skills to use various wallets and concepts related to virtual currencies.

"Investors need to be cautious to avoid being exploited or scammed by unscrupulous individuals," advised Mr. Dang Minh Tuan.

In 2024, Vietnam ranked 5th globally in terms of interest in digital assets, 3rd globally in the use of international trading platforms, and 6th in terms of trading volume on decentralized platforms.

Currently, 17 million Vietnamese people own digital assets, with a total market value exceeding $100 billion. Informal digital asset transactions are creating a huge underground economy.

(Source: Chainalysis statistics)

According to Mr. Tran Huyen Dinh, Founder of AlphaTrue, investors need to equip themselves with solid knowledge and increase their vigilance before trading cryptocurrency assets. Before participating, investors should thoroughly research different types of cryptocurrency assets, how blockchain technology operates, security techniques, and the characteristics of each asset type to manage safely and reduce risks. In addition, they should be cautious of investment offers promising high returns, as these could be signs of fraud; they should verify information from reputable sources and avoid falling into the "FOMO" mentality (fear of missing out).

"Currently, in a market lacking legal frameworks, users risk being scammed or losing their assets. Therefore, legalizing digital assets will not only bring peace of mind to people when participating in transactions, but also strengthen their confidence in blockchain technology and related applications," Mr. Dinh suggested.

Regarding legal issues, lawyer Bui Anh Tuan (Hanoi Bar Association) stated that many countries have not yet expressed clear views on digital assets, so establishing a legal framework requires great caution. However, a legal framework is necessary for management, as transactions, buying, selling, and investing in cryptocurrencies are taking place daily. The legal framework for virtual currencies and virtual assets will serve as a basis for managing related transactions, ensuring tax obligations, resolving disputes, and limiting fraud. This will also help prevent money laundering and terrorist financing risks through cryptocurrency transactions.

In Directive No. 05/CT-TTg issued on March 1, 2025, the Prime Minister requested the Ministry of Finance to take the lead, and the State Bank of Vietnam, according to its assigned functions and tasks, to propose and submit to the Government within March 2025 a legal framework for managing and promoting the healthy and effective development of digital assets and digital currencies. This legal framework will be an important legal basis to avoid negative impacts on the economy and social issues, while also contributing value to the national economy.

Source: https://baodautu.vn/canh-bao-do-ve-dau-tu-tien-ao-d250814.html