Vietnamese police have busted an “exceptionally large” multi-billion dollar crypto scam centered on the sale of fake digital currencies.
Inside the Multi-Billion Dollar Crypto Scam
Vietnam’s Ministry of Public Security (national police) announced Thursday the arrest of at least seven people in connection with ONUS, a Vietnam-based crypto investment app and exchange that has been used by millions of Vietnamese investors, AFP reports via Nampa.
140 people were summoned for questioning before the arrest of fintech and blockchain entrepreneur Vuong Le Vinh Nhan (aka Eric Vuong) and six accomplices, for real estate appropriation and money laundering. The platform suddenly became inaccessible around March 20, leaving home users stranded and scrambling to find answers.
Police say Vuong’s group has been operating since 2018, allegedly creating fake coins, issuing and selling them through ONUS, while manipulating supply, demand and prices to fabricate paper gains and attract more victims. The scam affects millions of users and at least one investor says he is “devastated” after losing more than $15,000.
A country where crypto scams are booming
Vietnam has become one of the fastest-growing crypto retail markets in the world, with around 17 million digital asset holders. Hanoi bans crypto as a means of payment but allows speculation in a legal gray zone, which scammers exploit: this is not the first case of high-profile crypto fraud in Vietnam.
The country has already witnessed multiple digital asset frauds and Ponzi schemes. In 2018, around 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 2024, Vietnamese authorities dismantled another large-scale cryptocurrency scam orchestrated by a company called “Million Smiles,” protecting nearly 300 potential victims of financial exploitation, having already defrauded approximately $1.17 million.
Takeaways for Traders
The rise of retail trading in emerging markets, combined with regulatory gray areas, makes Southeast Asia a hot spot for “short-cycle” high-yield securities scams, even as regulators around the world tighten scrutiny. It would not be surprising to see Vietnamese policy shift towards a strategy of increased pressure for clear rules on the issuance, trading and marketing of tokens, and less tolerance towards “experimental” platforms operating at scale.
For traders, the ONUS saga reminds us that jurisdictional risk is just as important as chart trends. Enforcement in regulatory gray areas can shift from non-interventionist to aggressive overnight, and when this happens, liquidity on localized platforms tends to disappear much faster than most risk models assume. “Too good to regulate” is no longer a clever marketing phrase; this is a practical definition of counterparty risk.
BTC’s price crashed under $68k. Source: BTCUSDT on Tradingview
Cover image from Perplexity, BTCUSD chart from Tradingview
Editorial process as Bitcoinist focuses on providing thoroughly researched, accurate and unbiased content. We follow strict sourcing standards and every page undergoes careful review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance and value of our content to our readers.
