Cryptocurrency scam warning

The cryptocurrency market boom in recent years has not only attracted legitimate investors but has also become fertile ground for scam groups. Under the guise of blockchain technology and promises of "huge profits and life-changing opportunities," many projects have devised sophisticated schemes to swindle money from participants.

Falling into the cryptocurrency "trap"

Recently, numerous cryptocurrency projects have been accused of fraud, and authorities have launched investigations to clarify these fraudulent activities. For example, on August 21st, the Hanoi City Police dismantled a group involved in issuing and promoting cryptocurrency investment projects linked to Dang Quoc Thang (born in 1986, residing in Hanoi).

Thang established Maxx Group to promote and solicit investment in various projects, including "Wingstep" and "Game Naga Kingdom," raising up to $7.86 million from over 3,000 investor accounts. The Wingstep project operated from May to August 2022 before becoming illiquid, preventing investors from withdrawing their money, and all the funds were misappropriated.

Previously, on August 12th, the Phu Tho Provincial Police dismantled a criminal group involved in illegal multi-level marketing, operating under the guise of buying and selling cryptocurrency called PaynetCoin (PAYN), raising billions of USD from people both domestically and internationally. Initial investigations revealed that since 2021, the suspects had programmed and created the PaynetCoin (PAYN) cryptocurrency on a Blockchain platform, building a reward system based on a pyramid scheme. Participants who registered to purchase investment packages were promised interest payments of 5%-9% per month, depending on the investment amount.

The case, which shocked public opinion, naturally involved Mr. Pips - Pho Duc Nam - an influential TikToker, who was identified as being part of the largest fraud ring in Vietnam, with over 5.3 trillion VND seized. After stealing money from victims, Nam and his accomplices used part of this money to buy USDT (a type of stablecoin) and gold to convert assets, in order to conceal the origin of the crime and transfer them abroad. The police identified and seized a "cold wallet" related to the ring, confirming the use of cryptocurrency as a channel for storing illegal assets.

The suspects in the cryptocurrency investment scam ring have been arrested (photo compiled from information provided by the police).

Public attention is currently focused on the AntEx cryptocurrency project, which is allegedly linked to Mr. Nguyen Hoa Binh (Shark Binh). The matter is still unresolved, but in the latest development, on the afternoon of October 6th, at a press conference of the Ministry of Public Security , Colonel Nguyen Duc Long, Deputy Director of the Hanoi City Police, stated that recently, information has appeared on social media and in some news outlets reporting that many people lost money participating in the AntEx project.

Authorities have released some information related to the case. In 2021, through the Next100Blockchain fund, Mr. Nguyen Hoa Binh invested $2.5 million in AntEx, a heavily promoted DeFi project. However, shortly after, the AntEx token lost 99% of its value, and its website and communication channels disappeared. By 2023, the project changed its name to Rabbit (RAB) at a rate of 1,000 ANTEX = 1RAB, but the new token also plummeted 95% from its peak, resulting in almost a total loss.

According to Mr. Phan Duc Trung, Chairman of the Vietnam Blockchain and Digital Assets Association, the damage caused by cybercrime in 2024 is estimated at approximately US$9.3 billion, with the Asia-Pacific region, including Vietnam, being a hotspot with thousands of transactions suspected of being related to fraud and money laundering. In Vietnam, the estimated damage amounts to over VND 12 trillion, according to a report by the Cyber ​​Security and High-Tech Crime Prevention and Control Department - A05 (Ministry of Public Security).

XUAN QUYNH

"Fertile ground" for cybercrime

Alongside investment scams, cryptocurrency-related crimes such as asset theft and e-wallet hijacking are also on the rise. According to Kaspersky, since 2022, their applications have detected nearly 200,000 attempts to steal cryptocurrency and e-wallet information. To date, the number of recorded incidents has increased tenfold, demonstrating the widespread nature and sophistication of this type of crime.

According to a report published on September 17th by Netcraft, a UK-based cybersecurity organization specializing in monitoring and preventing online fraud, two criminal gangs, Lighthouse and Lucid, operated a large-scale scam, creating 17,500 fake domain names for 316 brands in 74 countries by 2025. One of their common tactics was distributing fake cryptocurrency wallet applications such as Trust Wallet, MetaMask, OKX, Coinbase, or PancakeSwap to steal login credentials and misappropriate users' assets.

“The channels and websites that users trust and use the most are precisely where scam gangs exploit the most. In today's digital age, smartphones and familiar means of communication such as calls, SMS messages, or messaging apps like Facebook Messenger, Zalo, Telegram… can all become traps if users lack vigilance,” said Mr. Ngo Tran Vu, Director of NTS Security, commenting on common scams today.

According to the 2025 Southeast Asia Fraud Report, a collaboration between the Global Anti-Fraud Alliance (GASA), ScamAdviser, and BioCatch, digital fraud has escalated to a "crisis" level. The financial losses caused by this type of crime are enormous, reaching $23.6 billion, with an average loss of approximately $660 per victim, and cryptocurrency-related scams accounting for a significant portion of this amount.

Kaspersky security experts advise users to thoroughly research any project advertised as using blockchain technology before participating. Many fraudulent projects are currently impersonating blockchain applications to ensnare users. This is simply a social media scam, easily attracting people because it preys on their desire for easy money. Even projects that claim to use blockchain technology are not entirely secure.

Identifying different types of scams

Project cloning (imitation, imitating): These projects exploit FOMO (fear of missing out) with the goal of raising as much capital as possible and then disappearing. These projects launch professionally, claiming to build e-wallets, exchanges, their own blockchains, issue tokens, and develop payment systems... But once they've raised a huge amount of capital, the project team disappears without caring how much the token value has decreased.

Projects promising huge profits: The tactics are similar to project cloning, but not imitation or disguised projects. These projects promote unusually high returns to attract investors to hold tokens long-term. The strategy is to encourage buying and holding until a sufficient amount of money is raised – then the project owner "dumps" (rug pull) or liquidates the funds, causing investors to suffer heavy losses.

Multi-level marketing scheme disguised as cryptocurrency: This type of project operates based on the narrative of high profits and a profit-sharing pyramid. After the first generation (F1) is formed, the project will begin offering commissions, allowing existing customers to earn profits by recruiting new customers. This system continues until there are no more new customers, at which point there will be no more money to pay profits to existing customers.

KIM THANH

Source: https://www.sggp.org.vn/canh-bao-lua-dao-tien-ma-hoa-post817027.html