Vietnam Police Bust $1.17M Crypto Scam Involving Fake “QFS Coin”

Vietnam authorities have busted a major cryptocurrency scam that swindled over 400 people and 100 businesses out of $1.17 million.

The scam was centered around a fake cryptocurrency called Quantum Financial System (QFS) coin and a network of key players who convinced victims with promises of unbelievable returns backed by ancient treasures and family assets.

In a joint operation, Hanoi police arrested the general director and 7 key suspects involved in the scam. The company name “Million Smiles” was used to trap investors into the trap.

How the QFS Coin Scheme Operated

Scammers lured individuals and businesses with promises of a financial paradise. Investors were told they could get business capital with zero collateral and zero interest, and their investment would be backed by historical assets. Unfortunately, all these were lies, QFS coin had no assets.

During the raid of the company’s office, police found crucial evidence, documents and computers, of the scam. The operation also disrupted a big event where 300 more investors were about to be manipulated.

Impact on Victims and How the Scam Unfolded

The scam targeted both small investors and businesses, with investment amount ranging from 4-5 million dong ($190) for individual to 39 million dong ($1,350) per coin for businesses. Over time, the scam stole 30 billion dong ($1.17 million). Authorities believe the money was pumped into luxurious office in exclusive villa areas to look legit.

Key Takeaways from the Vietnam Scam Bust

  • 400+ individuals and 100 businesses were targeted.
  • The fraudsters promised high returns on investments in a fake crypto coin.
  • Victims invested amounts ranging from $190 to $1,350.
  • Police seized documents and evidence during a raid.
  • The scam involved deceptive financial claims, including backing from ancient treasures.
  • This is the second major crypto-related bust in Vietnam this quarter.

The Growing Threat of Crypto Fraud

This Vietnam operation is part of a global trend of increasing crypto frauds. In 2023, FBI reported 71% of crypto losses were due to investment scams. This growing threat reminds us to always verify crypto opportunities and be cautious of things that sound too good to be true.

As scams become more sophisticated, businesses and individuals alike must stay vigilant. Proper research and skepticism are essential before engaging in cryptocurrency investments.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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