Emily Walker
In a significant development, Vietnamese authorities successfully dismantled a large cryptocurrency fraud scheme operated by a firm named ‘Million Smiles,’ safeguarding nearly 300 individuals from potential financial loss.
The scam centered on a fictitious token labeled QFS (Quantum Financial System), having already defrauded around $1.17 million (30 billion VND) from approximately 400 individuals and 100 businesses.
The deceptive crypto operation employed aggressive marketing strategies, with claims of financial freedom and exaggerated returns tied to mythical ancestral riches.
Victims were coaxed into investing between 4–5 million VND ($190) per person to 39 million VND ($1,350) per business. Authorities indicated that QFS tokens were marketed as a gateway into an innovative financial ecosystem, promising access to funds without collateral and the potential for significant wealth.
Police Action That Uncovered the Fraud
Reports from Vietnam’s national broadcaster, VTV, highlighted how the Hanoi City Police discovered plans for Million Smiles to conduct a promotional conference at Bao Son Paradise in Hanoi on December 24, 2024, aimed at attracting over 300 attendees.
This event was intended to further their deceptive marketing efforts, enticing more investors into buying their fraudulent QFS tokens. Acting promptly, the Economic Security Department intervened just hours before the event, averting greater harm.
During the operation, law enforcement arrested the General Director of Trieu Nu Cuoi Company, which oversees Million Smiles, along with seven other key figures associated with the scam.
Authorities seized critical evidence, including financial documents, marketing materials, and electronics, which highlighted the scale of the fraudulent operations.
Initial inquiries revealed that Million Smiles had constructed a well-crafted façade of legitimacy, establishing offices in upscale villas and major business areas, funded entirely by investor money.
Company leaders frequently hosted online Zoom sessions, promoting lavish visions of wealth linked to QFS ownership, erroneously claiming that these tokens were supported by historical treasures inherited from the “Ho Chi Minh Headquarters.”
Many victims, including small business owners and individuals of humble means, were enticed by the prospect of rapid wealth as QFS token prices allegedly soared. However, investigators uncovered that QFS tokens had no real crypto assets or backing, rendering them worthless.
Fraudulent Strategies and Public Warnings
Further investigations disclosed that the company’s executives lacked substantial financial resources. Instead, money from new investors was reallocated to preserve the illusion of success, including lavish office branding and hosting extravagant promotional events.
One victim from Yen Bai, dependent on forest farming, poured 39 million VND into QFS tokens, lured by the promise of riches. Months later, he saw no return, a story shared by countless others who entrusted their savings to Million Smiles, only to suffer financial ruin.
Hanoi City Police have stressed that despite ongoing warnings against unregulated cryptocurrency schemes, many people still fall victim due to financial literacy gaps and the temptation of easy wealth.
Authorities have encouraged citizens to thoroughly verify investment prospects, be wary of inflated claims, and report any suspicious activities to law enforcement.
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