Authorities in Vietnam arrested five members of a fraud ring who made over $385 million by setting up a fake crypto exchange. By advertising on Telegram, the perpetrators attracted tens of thousands of investors.
Vietnam banned Telegram this week, citing rampant criminal activity on the platform. The government is interested in being a crypto hub, but it’s prepared to fight back against the industry’s seedier elements.
Fake Exchange in Vietnam
There is a wide range of crypto scams in the market right now, from sophisticated hacking operations to a wave of violent crimes. However, fake exchanges are less common, with most of the largest examples taking place years ago.
A team in Vietnam revived this fraud method with Matrix Chain (MTC), a totally fake crypto exchange:
“Around the beginning of 2024, Dong Nai Provincial Police discovered a group of subjects operating fraudulently to appropriate assets on cyberspace, with the trick of setting up a virtual currency exchange (MTC – Matrix Chain), luring victims in provinces and cities across the country to participate as virtual currency investors,” a government press release stated.
Vietnam’s Ministry of Public Security and other federal law enforcement agencies teamed up with several local police departments to arrest the exchange’s proprietors in one sweep.
They identified five main ringleaders of this $385 million crypto crime operation, all of whom were Vietnamese citizens.
To run the fake exchange, the group advertised in Telegram and Facebook chats all over Vietnam’s crypto community. They ran MTC over PancakeSwap, selling worthless tokens and collecting user fees.
In total, they accumulated nearly 395 million USDT. This week, Vietnam’s government banned Telegram, citing criminal activity on the platform as the main reason.
Although Vietnam has positioned itself as a crypto hub, this fake exchange saga reminds us of the government’s capacity for crackdowns.
Even as it prepares friendly regulations and consults with major entrepreneurs, Vietnam isn’t afraid to label huge projects as scams.
In light of this fake exchange, it’s easy to see why Vietnam may need these harsh measures. Tens of thousands of Vietnamese citizens invested in MTC because of its effective Telegram advertising, and their money was funneled towards sports cars, property acquisitions, and other extravagant purchases for five criminals.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
