The Vietnamese authorities have recently dismantled a massive crypto fraud scheme, estimated to be worth several billion dollars, which was based on the digital token known as Paynet Coin (Payn). According to reports from local media outlets, such as Công and NHân Dân, the provincial police in Phu announced on Monday that the suspects had lured thousands of victims, both in Vietnam and overseas, into an illegal multilevel marketing (MLM) operation disguised as a crypto investment platform.
The group behind the scheme used websites like fmcpay.com and AFF2024.com to promise investors monthly returns of 5% – 9% and additional commissions for recruiting others. However, the funds from new participants were used to pay earlier investors, revealing a classic Ponzi structure, as identified by the authorities. The mastermind behind the operation was identified as Nguyen Van Ha, a 45-year-old from the province of Gia Lai, who, despite lacking formal IT training, allegedly commissioned the development of Payn Blockchain, a sophisticated security system and reward program designed to appear legitimate.
The program also misled participants by claiming that Payn could be used for booking flights and hotels and that the exchange was registered in the USA, which the authorities claim was fabricated. To build trust and attract more victims, the group organized lavish seminars at five-star venues, portraying Payn as a legitimate investment with high returns. The authorities claim that Ha personally amassed around $200 million.
Payn Scam and Its Global Reach
At the time of the arrests, money was still flowing into the platform from investors in countries such as India and the Philippines. According to the Vietnamese online newspaper VNEXPRESS, the police have confiscated and frozen assets worth $38 million, including cash, foreign currencies, and real estate. So far, 20 people have been arrested in connection with the case.
Ha, his deputy Phan Viet Lap, and other accused individuals are charged with violating MLM regulations and using electronic networks for fraudulent property activities, in accordance with Vietnam’s Criminal Code. The crackdown on this massive crypto Ponzi scheme highlights the ongoing battle against fraud in the cryptocurrency space.
Crypto Fraud and Hacks: A Growing Concern
According to Certik, losses from crypto hacks, fraud, and exploits reached $2.47 billion in the first half of 2025. While the second quarter saw a decline in hacks, with $800 million lost in 144 incidents, the total number of incidents has already increased by almost 3% compared to 2024. After recovering $187 million, the adjusted losses are around $2.2 billion.
This case and the statistics on crypto fraud and hacks underscore the importance of vigilance and regulation in the cryptocurrency market. As the space continues to evolve, it’s crucial for investors to be aware of the risks and for authorities to remain proactive in combating fraud. For more information on this and other crypto-related news, visit https://cointelegraph.com/news/vietnam-police-bust-billion-dollar-crypto-ponzi-ring-behind-paynet-coin-scam-report?utm_source=rss_feed&utm_medium=rss_tag_altcoin&utm_campaign=rss_partner_inbound
