Vietnamese Police Arrest Gang Accused of $394M Matrix Chain Scam
David ClarkeThe operation to dismantle Matrix Chain saw "many elite officers and soldiers" working around the clock for 200 days.[...]
Vietnamese Police Dismantle Massive Crypto Scam, Arrest Alleged Ringleader
Vietnamese authorities have made a significant breakthrough in combating cryptocurrency fraud, arresting a group accused of running a scam that allegedly defrauded tens of thousands of victims out of nearly $400 million (VND10 trillion). The Ministry of Public Security revealed that the operation, called Matrix Chain, lured investors with promises of "super large profits" and attractive commissions, only to leave them with worthless tokens.
Key Arrests and Investigation Details
The alleged mastermind, Nguyen Quoc Hung, along with four other suspects born between 1980 and 1991, have been taken into custody. Police conducted raids on their properties and workplaces, uncovering a sophisticated multi-level operation spanning three regions of Vietnam. Victims were reportedly asked to pay a small fee of 1 USDT to download the Matrix Chain software, with most funds allegedly spent on luxury purchases while a fraction went toward recruitment and marketing.
Investigators disclosed that Hung admitted to hiring anonymous developers through Telegram to create the platform, paying $20,000 for the service. Authorities also allege he controlled a wallet containing 100 million MTC tokens, manipulating their market value to extract more money from investors.
Vietnam's Crypto Regulation Efforts
This crackdown coincides with Vietnam's plans to establish a legal framework for digital assets by late March, part of broader economic growth initiatives. The Ministry of Finance and State Bank of Vietnam are finalizing proposals to regulate the crypto sector, aiming to create a safer and more transparent environment for cryptocurrency transactions.
The case underscores the increasing sophistication of crypto-related crimes, as highlighted by recent United Nations warnings about cryptocurrency's role in global illegal activities including money laundering. As Vietnam moves toward regulation, it reinforces the need for continued international cooperation to combat financial fraud and protect investors from sophisticated scams.
