Vietnam Shuts $200M Crypto Ponzi Scheme with 20 Arrests

Vietnam’s Phu Tho Provincial Police have dismantled one of the country’s largest cryptocurrency Ponzi schemes, with more than 20 individuals arrested in a case involving over $200 million in fraudulent activity. The operation, which targeted thousands of investors both within Vietnam and internationally, was run under the guise of a multilevel marketing platform and promised monthly returns of up to 9% along with recruitment bonuses [1].

The scheme was allegedly orchestrated by Nguyen Van Ha, a 45-year-old from Gia Lai Province with no formal IT background. According to authorities, Ha hired developers to create the PAYN blockchain, design a rewards system, and construct a seemingly robust security framework to give the platform legitimacy [1]. The fraud also falsely claimed U.S. registration and marketed PAYN as a digital currency that could be used to book travel services. To further win investor trust, the group hosted lavish events at high-end venues, creating an illusion of legitimacy [1].

Investors were paid out using funds from newer participants, a classic structure of Ponzi schemes. At the time of the operation’s shutdown, authorities reported that Ha personally retained around $200 million, while his deputy, Phan Viet Lap, and others were involved in managing the fraudulent activities [1]. A total of $38 million in assets—comprising cash, foreign currency, and real estate—has been frozen by law enforcement.

The scheme continued to attract new investors from countries such as India and the Philippines even after it had already collapsed internally, highlighting the global reach of the fraud [1]. The case has added to a year of heightened crypto-related losses. According to CertiK, global losses from hacks, scams, and exploits totaled $2.47 billion in the first half of 2025, with $2.2 billion in net losses after partial recoveries [1].

This crackdown reflects Vietnam’s increasing focus on regulating the fast-growing but often unregulated cryptocurrency sector. The arrests in Phu Tho mark a significant effort by Vietnamese authorities to address financial crimes that exploit digital assets. While the use of crypto can offer financial innovation and efficiency, the case underscores how it can also be weaponized for fraud [1].

The fallout from the scam is expected to leave many victims with significant financial losses, potentially including life savings invested in the promise of high returns. The extent of recoverable funds remains unclear, and the case serves as a stark warning to investors in the crypto market about the risks of unverified schemes [1].

Source: [1] Vietnam Cracks $200M Crypto Ponzi Scheme, 20 Arrested (https://coindoo.com/vietnam-cracks-200m-crypto-ponzi-scheme-20-arrested/)