Vietnamese Authorities Successfully Uncover and Halt Massive Cryptocurrency Scam
In a significant breakthrough, Vietnamese authorities have effectively dismantled a major cryptocurrency scam operated by a company known as ‘Million Smiles.’ This strategic intervention safeguarded nearly 300 individuals from potential financial exploitation and halted further fraudulent activities.
The Deceptive Operation Behind Million Smiles
The fraudulent scheme revolved around a non-existent token called QFS (Quantum Financial System), which had already defrauded approximately $1.17 million (30 billion VND) from about 400 individuals and 100 businesses. The operation relied on misleading marketing strategies, which included false assurances of financial independence, exaggerated returns, and even spiritual connections to ancestral treasures.
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Victims were coaxed into investing sums ranging from 4–5 million VND ($190) per person to 39 million VND ($1,350) per business. The QFS tokens were portrayed as a gateway to a groundbreaking financial ecosystem, with promises of collateral-free loans and substantial wealth.
The Strategic Police Operation That Thwarted the Scam
According to Vietnam’s national broadcaster VTV, the Hanoi City Police discovered plans for Million Smiles to conduct a promotional event at Bao Son Paradise in Hanoi on December 24, 2024, targeting over 300 potential investors. This event aimed to enhance their fraudulent campaign by enticing more individuals to invest in the fictitious QFS tokens.
The Economic Security Department acted decisively, intervening hours before the event to prevent additional harm. During this operation, law enforcement apprehended the General Director of Trieu Nu Cuoi Company, the parent company of Million Smiles, along with seven other key figures involved in the scam. Authorities confiscated vital evidence, such as financial documents, promotional materials, and computers, exposing the full extent of the fraudulent operation.
Initial investigations revealed that Million Smiles had meticulously created an image of legitimacy. They established offices in opulent villas and prestigious business districts, funded entirely by investor contributions. Company leaders frequently conducted online Zoom webinars, showcasing extravagant visions of financial prosperity linked to QFS ownership. They falsely claimed that QFS tokens were backed by historical treasures and assets inherited from the “Ho Chi Minh Headquarters.”
Victims, including small business owners and individuals from modest financial backgrounds, were lured by promises of becoming billionaires once QFS token values skyrocketed. However, investigators discovered that there were no real crypto assets or genuine backing behind QFS tokens, rendering them entirely worthless.
Authorities Issue Alerts and Warnings About Deceptive Tactics
Further investigations uncovered that the company’s leaders lacked substantial financial assets of their own. Instead, funds collected from new investors were used to maintain the illusion of success, including extravagant office branding and large-scale promotional events.
One victim, a resident of Yen Bai who depended on forest farming for his livelihood, invested 39 million VND in QFS tokens, trusting in the promise of wealth. Unfortunately, months later, he received nothing in return. His story is one of many, reflecting the tragic experiences of individuals who placed their trust in Million Smiles and faced financial ruin.
The Hanoi City Police emphasized the importance of caution, noting that despite repeated warnings against unregulated cryptocurrency schemes, many individuals continue to fall victim due to financial illiteracy and the allure of easy money. Authorities urged citizens to thoroughly verify investment opportunities, remain skeptical of exaggerated claims, and report any suspicious activities to law enforcement agencies.
As the global digital currency market continues to evolve, it is crucial for individuals to remain informed and vigilant, safeguarding themselves against potential scams and fraudulent schemes.
