Illegal cryptocurrency exchanges and tricks to defraud investors

The common point of illegal cryptocurrency exchanges is the commitment of "unimaginable" profits, promising quick wealth.

At the end of July, in Ho Chi Minh City, an event was introduced as the launch of the "AI lover care" product of a company called LM, but the attendees were surprised because it was actually an invitation to invest in virtual currency. Notably, most of the attendees were elderly.

Disguised invitation to invest in virtual currency

Mr. HH, the company director, offers investment packages of 60 million VND or more, promising high profits, while also encouraging more people to join to earn commissions. He also envisions a scenario where the application will generate revenue of 150 million USD next year and will share profits with investors after deducting expenses.

To increase persuasiveness, each attendee was also given more than 240 BTC2 coins - a virtual currency developed by this company, with a name that is easily confused with Bitcoin 2 (BTC2) and is being sold at 0.16 USD/coin. According to research, this company has been accused of embezzling investors' money many times. However, Mr. H. cited the reason of "difficulties after the COVID-19 pandemic" to explain the delay in refunding.

A conference disguised as an AI application launch but actually called for financial investment and enticed people to hold virtual currency. Photo: LE TINH

When the seminar ended, a middle-aged woman approached us and affirmed that "BTC2 is very valuable" and enthusiastically called for investment. This person shared that she used to be in debt, but now "has food and savings" thanks to participating in the exchange.

Not only at live events, virtual currency invitations are also rampant on Facebook, Zalo, Telegram. Accounts continuously boast of 100%-200% profits after a short time, with referral codes, creating a crowd effect to attract new people despite the fact that the authorities have recently continuously dismantled disguised "digital currency investment" lines. Most recently, Phu Tho Provincial Police arrested a group hiding under the guise of digital currency TCIS through a fake exchange called "Toptrade 1". Although only operating since June 2024, the group has attracted thousands of people to open more than 4,000 accounts, with an investment of more than 50 billion VND.

Also in August, the provincial police continued to crack down on a group of scammers using PaynetCoin (PAYN). The subjects advertised that PAYN could generate 5%-9% interest per month and could be used to buy airline tickets and book hotels. In fact, this was an illegal capital mobilization scheme with an amount of up to thousands of billions of VND, attracting both domestic and foreign people.

Previously, in May 2025, Dong Nai Police broke up a large-scale virtual currency ring called MTC - Matrix Chain. In just a short time, this group appropriated nearly 10,000 billion VND from tens of thousands of people.

According to CoinLaw's report, in 2024, there were 58,200 cryptocurrency fraud cases recorded globally, an increase of nearly 25% compared to 2023. Total revenue from cryptocurrency-related crimes, including fraud, reached $24.2 billion, up $3.6 billion from the previous year.

Experts warn that the tricks of scam platforms are becoming more and more sophisticated, from using confusing names, organizing technology seminars, to showing off profits on social networks. The common point is the commitment of "unimaginable" profits and the promise of quick wealth.

Authorities also recommend that people be cautious, not invest in unlicensed exchanges, and be wary of attractive offers.

Expectations for piloting 5 digital asset exchanges

Many experts expect that the pilot licensing of digital asset trading floors will help make the market more transparent and reduce the risk of fraud. Master Pham Manh Cuong, founder of Wischain Company - a consulting and implementation unit for blockchain projects - said that most virtual currency scams stem from the anonymity of this type of asset. The models are often covered in flashy covers, promising profits of 200% - 300%, even thousands of %, but in reality are just "traps" that prey on greed.

Financial expert Phan Dung Khanh analyzed that if cryptocurrency exchanges are officially licensed to operate, investors will have a legal basis to participate instead of having to turn to risky international platforms. However, legal exchanges can still be impersonated to commit fraud, so management agencies need to increase communication and warnings. "Disguised exchanges often promise unrealistic profits. Their tricks are increasingly sophisticated, preying on the psychology of wanting quick profits, so investors must be extremely careful," said Mr. Khanh.

According to Mr. Pham Manh Cuong, the best way to protect yourself is to equip yourself with knowledge and be alert to attractive invitations. "People need to carefully research the project and the publisher, choose official sources of information, and not believe in advertisements on social networks. Correct awareness is the first line of defense against fraud," he emphasized.

In fact, after the Law on Digital Technology Industry comes into effect, along with the plan to pilot a digital asset exchange and build an international financial center, the Vietnamese cryptocurrency market is expected to become more transparent. The Ministry of Finance is drafting a pilot Resolution to submit to the Government.

Accordingly, it is expected that there will be about 5 digital asset trading floors piloted, allowing trading of popular coins such as Bitcoin, Ethereum..., while connecting with international floors to ensure liquidity and competition. The leader of the Vietnam Securities Depository and Clearing Corporation (VSDC) said that the Securities Commission has a project on a crypto asset trading floor, submitting it to the Government for consideration and approval.

Although the pilot resolution is still in the draft stage, in fact, since the beginning of the year, many banks, securities and financial companies have been preparing infrastructure and human resources to operate digital asset trading floors when the pilot officially takes effect. In particular, the Military Bank (MB) has just signed a memorandum of understanding with Dunamu - the operator of Upbit, the largest cryptocurrency platform in Korea. Dunamu will be a strategic partner, supporting MB in establishing a cryptocurrency exchange in Vietnam, while also participating in building a legal system and investor protection mechanism.

Mr. Oh Kyoung-suk, CEO of Dunamu, assessed that Vietnam has great potential with millions of people owning digital assets, annual transaction volume exceeding 80 billion USD and is in the top 5 countries attracting the most blockchain capital in the world.

Talkshow: What are the opportunities for cryptocurrency exchanges?

Vietnam currently has about 17 million digital asset owners, ranking 7th globally. In the period 2023-2024, blockchain capital flows into Vietnam are expected to exceed 105 billion USD. Therefore, licensing domestic exchanges is considered urgent to manage cash flow and create trust for investors.

In that context, Nguoi Lao Dong Newspaper organized the talk show "What are the opportunities for cryptocurrency exchanges?" this morning, August 21. Experts and businesses will discuss building domestic exchanges or licensing international exchanges, choosing safe and transparent transactions, along with the legal framework and monitoring mechanism to protect investors, promote market development...

Source: https://nld.com.vn/san-tien-ao-trai-phep-tim-moi-cach-luon-lach-196250820203144805.htm