Vietnamese authorities just busted a massive crypto scam that fooled 138,000 people out of $400 million. The fake exchange MTC (Matrixchain) operated like a pyramid scheme, promising huge profits from worthless tokens while encouraging victims to recruit family and friends. Scammers pocketed 55% of the deposits, spending the rest on flashy marketing events and commissions. They built this elaborate fraud for just 20,000 USDT – talk about return on investment. The investigation reveals how simple deception can create devastating financial consequences.
Another day, another crypto scam that makes you wonder if people ever learn. This time it’s Vietnam getting hit hard, with over 138,000 people falling for a fake exchange called MTC, short for Matrixchain. The damage? A staggering $400 million down the drain.
The scammers weren’t exactly creative geniuses. They built their entire platform for just 20,000 USDT – roughly $520 million Vietnamese dong. That’s pocket change compared to what they stole. Users had to pay 1 USDT through SafePal wallets just to join the party. Red flag number one, but apparently nobody noticed.
Building a $400 million scam with just $20,000 in startup costs – even criminals are getting better ROI than most legitimate businesses.
MTC operated like your typical multilevel marketing scheme with a crypto twist. Promise massive profits from worthless tokens, get people to recruit their friends and family, rinse and repeat. The group split operations across Vietnam from north to south, organizing flashy promotional events to build trust. Nothing says “legitimate business” like a good old-fashioned dog and pony show.
Here’s the math that should make your stomach turn. Investors collectively deposited more than 394 million USDT. The scammers pocketed about 55% of that money for themselves. The rest went to marketing campaigns, commissions for recruiters, and those fancy events. At least they were generous with other people’s money.
The money laundering wasn’t sophisticated either. They funneled funds through real estate purchases in northern Vietnam and used multiple wallets to muddy the paper trail. Basic stuff, really.
Dong Nai Provincial Police spent nearly 200 days building their case before moving in. They arrested key players including Nguyen Quoc Hung, Bui Thi Thanh Nga, Ho Long Tri, Dinh Huu Hay, and Than Van Hiep. Several accomplices got summoned for questioning too. The five detainees were all born between 1980 and 1991, showing how millennials aren’t immune to running elaborate financial scams. Vietnam is currently grappling with an estimated $90 billion influx of cryptocurrency flowing through the country.
The scam likely ran for over half a year before authorities shut it down. That’s six months of people throwing money at a platform that cost less than a decent car to build. The regional reach was impressive though – hitting major cities like Hanoi and Ho Chi Minh City, plus Dong Nai province and beyond.
Vietnamese investors just learned an expensive lesson about too-good-to-be-true crypto promises.
