$0.66-billion cryptocurrency swindle to be investigated

This is claimed to be the largest multi-level business swindle in Vietnam to date

According to Document No.3318, Deputy Prime Minister Vuong Dinh Hue directed the ministries of Industry and Trade (MoIT), Planning and Investment (MPI), Finance (MoF), Justice (MoJ), Public Security (MoPS), and the State Bank of Vietnam (SBV) to check and handle the VND15-trillion ($0.66 billion) cryptocurrency swindling case.

In order to strengthen state management over Bitcoin and cryptocurrencies, Prime Minister Nguyen Xuan Phuc has just issued Directive No.10/CT-TTg, asking SBV to direct all banks and credit organisations not to do all transactions related to cryptocurrency. They have to boost reviewing and reporting on suspicious transactions involving cryptocurrency.

The PM assigned MoPS to coordinate with other ministries to investigate, detect, and handle violations related to financial mobilisation, multi-level business, and swindling on the internet through cryptocurrency.

Earlier, on April 8, dozens of investors came to the headquarters of Modern Tech Co., Ltd. at Nguyen Hue Street, District 1, Ho Chi Minh City to protest against the company’s appropriation of over VND15 trillion ($0.66 billion) in cryptocurrency. This figure was attained by the successful mobilisation of $650 million at the ICO (initial coin offering) by iFan, Pincoin, and other cryptocurrencies created by Modern Tech.

The company held many events in Hanoi and Ho Chi Minh City to seek investors and call for investment into cryptocurrency, along with committing to payout 48 per cent of its profit every month and paying back the original investment within four months.

Modern Tech has yet to issue an official response to the accusations of investors. This company was established at the end of last October with a charter capital of VND100 billion ($4.4 million) pooled by eight founders. Modern Tech registered to operate in the fields of website design, development, software, and investment consultancy.