Vietnamese police have dismantled a “very large” multi-billion dollar cryptocurrency scam centered around the sale of fake digital currencies.
Inside a multi-billion dollar crypto scam
Vietnam’s Ministry of Public Security (National Police) on Thursday announced the arrest of at least seven people in connection with ONUS, a Vietnam-based cryptocurrency investment app and exchange used by millions of Vietnamese investors. AFP reports through Nampa.
140 people were summoned for questioning before fintech and blockchain entrepreneur Phuong Le Vinh Nhan (aka Eric Phuong) and six of his accomplices were arrested, on charges of property seizure and money laundering. The platform suddenly became inaccessible around March 20, leaving retail users bereft and scrambling for answers.
Police allege that Vuong’s group has been operating since 2018, allegedly creating, issuing and selling counterfeit coins through ONUS, while manipulating supply, demand and prices to manufacture fiat gains and attract more victims. The scam leaves millions of users affected, with at least one investor saying they were “devastated” after losing more than $15,000.
A country where cryptocurrency scams thrive
Vietnam has become one of the world’s most important retail cryptocurrency markets, with around 17 million digital asset holders. Hanoi bans cryptocurrencies as a means of payment but allows speculation in the legal gray area, which scammers exploit: This is not the first case in Vietnam of high-profile cryptocurrency fraud.
The country has already witnessed several digital asset scams and Ponzi-style schemes. Back in 2018About 32,000 people may have fallen victim to a $658 million initial coin offering (ICO) scam for two different cryptocurrencies, both launched by Ho Chi Minh City-based Modern Tech JSC. In 2024Vietnamese authorities have dismantled another large-scale cryptocurrency scam organized by a company called Million Smiles, to protect nearly 300 potential victims from financial exploitation, after it had already embezzled about $1.17 million.
Takeaway for traders
Retail booms in emerging markets, combined with regulatory gray areas, are turning Southeast Asia into a hotspot for high-yield “short cycle” scams, even as regulators around the world step up enforcement. It would not be surprising to see Vietnam’s policy change course to a strategy based on more pressure for clear rules on token issuance, exchanges, and marketing, and less tolerance for “demo” platforms operating at scale.
For traders, the ONUS saga is a reminder that jurisdictional risk is as important as chart patterns. It is possible for enforcement in regulatory gray areas to shift from laissez-faire to aggressive overnight, and when that happens, liquidity on local platforms tends to disappear much more quickly than most risk models assume. “Too good to be regulated” is no longer a clever marketing line; It is a working definition of counterparty risk.
BTC’s price crashed under $68k. Source: BTCUSDT on Tradingview
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