Signs to identify fraudulent cryptocurrency exchanges for investors

In just a few months, the police force has continuously uncovered many scams disguised as digital currency with a scale of tens to thousands of billions of VND, showing the great risks that investors face when participating in this market.

Crashing many fraudulent cryptocurrency exchanges

Recently, Phu Tho Provincial Police arrested a group operating under the guise of the virtual currency TCIS, operating through a fake exchange called “Toptrade 1”. Although it has only existed since June 2024, the group has attracted thousands of participants, opened more than 4,000 accounts, with a total investment of over 50 billion VND.

Also in August 2025, local police continued to crack down on a group related to PaynetCoin (PAYN). The subjects advertised that PAYN could generate profits of 5%-9%/month, even used to buy airline tickets and book hotel rooms. In fact, this was a trick to illegally mobilize capital, appropriating thousands of billions of VND from both domestic and foreign investors.

Previously, in May 2025, Dong Nai Police dismantled a large-scale virtual currency ring called Matrix Chain (MTC), appropriating nearly 10,000 billion VND from tens of thousands of people in a short time.

According to CoinLaw's report, in 2024, there will be 58,200 cryptocurrency-related fraud cases globally, an increase of nearly 25% compared to 2023. These numbers show the existing risks if investors lack information and basic knowledge.

At the Talkshow "What are the opportunities for cryptocurrency exchanges?" organized by Nguoi Lao Dong Newspaper on August 21, experts pointed out signs that help investors limit risks.

Identifying fraudulent cryptocurrency exchanges

At the Talkshow “What are the opportunities for cryptocurrency exchanges?” organized by Nguoi Lao Dong Newspaper on August 21, many experts pointed out factors that help limit risks and avoid falling into scam traps.

Mr. Huynh Quoc Nam, Business Development Director of OKX Global, said that a reputable exchange must have a clear, transparent license and fully implement the Know Your Customer (KYC) process. In addition, the exchange must require investors to prove the source of funds to prevent money laundering and fraud. Ignoring this factor is a suspicious sign.

From a legal perspective, lawyer Dao Tien Phong, CEO of Investpush, emphasized that transparency is a key factor. Investors should not only look at the age of the exchange, but also consider how the exchange discloses information. If it only paints a “bright” picture while hiding risks, that is a cause for concern.

Mr. Nguyen The Vinh, CEO of Ninety Eight, warned that any exchange promising “unimaginable” interest rates has problems, because no legitimate business model can guarantee such high profits. Safety is only guaranteed when the exchange has a license, full KYC and a mechanism to protect investors’ assets.

Adding his point of view, Mr. Tran Xuan Tien, General Secretary of the Ho Chi Minh City Blockchain Association, said that investors need to have basic knowledge about blockchain, liquidity and profit commitment to verify information themselves. Only when equipped with a knowledge base can investors identify risks and avoid being caught up in “rosy” advertisements.