In a fortunate move, the Vietnamese authorities were able to successfully dismantle a large-scale cryptocurrency scam orchestrated by a company called ‘Million Smiles,’ protecting nearly 300 potential victims from financial exploitation.
The scheme, built around a fictitious token called QFS (Quantum Financial System), had already swindled approximately $1.17 million (30 billion VND) from around 400 individuals and 100 businesses.
The fraudulent crypto operation relied on “aggressive” marketing tactics, including “false promises of financial freedom, exaggerated returns, and spiritual claims tied to ancestral treasures.”
Victims were persuaded to invest amounts ranging from 4–5 million VND ($190) per individual to 39 million VND ($1,350) per business. Authorities reported that QFS tokens were advertised as an entry point into a revolutionary financial ecosystem, promising access to collateral-free funding and significant wealth.
The Coordinated Police Raid That Led To The Bust
As reported by Vietnam’s national television broadcaster, VTV, the Hanoi City Police uncovered plans for Million Smiles to host a promotional conference at Bao Son Paradise, Hanoi, on December 24, 2024, targeting over 300 participants.
The event was set to amplify their deceptive campaign, luring more investors into purchasing the fraudulent QFS tokens. Acting swiftly, the Economic Security Department intervened hours before the conference, preventing further damage.
During the coordinated raid, law enforcement detained the General Director of Trieu Nu Cuoi Company (the parent company of Million Smiles) and seven key individuals linked to the scam.
Authorities seized crucial evidence, including financial records, promotional materials, and computers, revealing the extent of the fraudulent crypto operation.
Initial investigations showed that Million Smiles had meticulously crafted an image of legitimacy. Offices were established in luxurious villas and prominent business districts, financed entirely through investor contributions.
Online Zoom webinars were frequently hosted by company leaders, who painted extravagant visions of financial success tied to QFS ownership. They falsely claimed QFS tokens were backed by historic treasures and assets inherited from the “Ho Chi Minh Headquarters.”
Victims, including small business owners and individuals from modest financial backgrounds, were drawn in by the promise of becoming dollar billionaires once QFS token values surged. However, investigators found that no tangible crypto assets or real backing existed behind QFS tokens, rendering them entirely worthless.
Deceptive Tactics And Public Advisory From Authorities
Further investigations revealed that the company’s leaders had no substantial financial assets of their own. Instead, funds collected from new investors were redirected towards maintaining the illusion of success, including the lavish branding of their offices and hosting large-scale promotional events.
One victim, a resident of Yen Bai who relied on forest farming for his livelihood, invested 39 million VND in QFS tokens, believing in the promise of wealth. Months later, he received nothing in return. This story mirrors hundreds of others who placed their trust in Million Smiles only to face financial devastation.
The Hanoi City Police emphasized that despite repeated warnings against unregulated cryptocurrency schemes, many individuals continue to fall prey due to financial illiteracy and the allure of easy wealth.
Authorities urged citizens to verify investment opportunities, remain cautious of exaggerated promises, and report any suspicious activities to law enforcement agencies.
Featured image created with DALL-E, Chart from TradingView
