Virtual Currency in Vietnam: A History of Scams and a Warning for Investors

In recent years, Vietnam has seen numerous incidents involving crypto projects (tokens/coins, “mining farms,” NFT platforms, blockchain games, etc.) that ultimately resulted in investors losing money. From the devastating 2018 Pincoin – iFan (Modern Tech) “bomb” that sent shockwaves across the country, to the cases of Sky Mining, Wingstep / Game Naga Kingdom, and most recently, AntEx involving a famous TV personality—each case leaves a painful lesson: blockchain technology does not automatically make every project legitimate or safe.

Below is a summary of typical cases (data excerpted from press reports and police announcements), followed by an analysis of common scam mechanisms, warning signs, and specific recommendations for investors.

I. Typical Cases, Figures, and Consequences

Note: The figures below are taken from investigative reports and official announcements from state agencies. Some cases have slightly varying figures across different sources (due to the stage of legal proceedings, asset freezes, currency conversion, etc.); the source is specified in each section for cross-reference.

1) Modern Tech — Pincoin & iFan (2017–2018) — ~US$660 Million (Estimated)

• The Incident: Two ICOs (Pincoin and iFan), allegedly run by Modern Tech, attracted tens of thousands of investors with promises of high returns. After an initial period of “payouts,” the operating team vanished, leaving investors unpaid.
• The Loss: According to international and domestic investigative reports, the total alleged scale was about US$660 million from approximately 32,000 investors—making this one of the largest ICO incidents causing losses to Vietnamese investors.

2) Sky Mining (2018–2019) — Hundreds to nearly 1,000 Billion VND

• The Incident: Sky Mining was promoted as a “virtual currency mining farm” using an investment model that leased mining equipment and promised fixed returns. The founder later disappeared without a trace, and investors filed complaints about lost money.
• The Loss: Many domestic news reports cited losses of up to hundreds of billions of VND, with some sources reporting nearly 900 billion VND lost or involved. Investors submitted complaints to the police.

3) Wingstep & Game Naga Kingdom (2025 / Takedown 2025) — ~200 Billion VND, ~3,000 Investors

• The Incident: Projects combining “shopping/app + NFT purchase + promised returns” (e.g., buying virtual shoes, exchanging crypto; or buying game character NFTs worth tens to hundreds of millions of VND). They promised regular profits and referral commissions—in reality, a multi-level marketing/Ponzi scheme.
• The Loss: According to the press and investigating agencies, the operating team allegedly misappropriated about 200 billion VND from over 3,000 investors. The case led to the prosecution and temporary detention of suspects.

4) AntEx (Issued 2021 — Prosecution 2025) — Raised ~4.5 Million USDT (~117 Billion VND); Assets Frozen ~900 Billion VND (Varying Reports)

• The Incident: The “AntEx” project (promoted as an ecosystem including the AntEx token, VNDT stablecoin, an e-wallet, the Next100 fund, etc.) attracted users based on the public credibility of a celebrity/investor. Investigating authorities prosecuted the founding team, including a widely known figure (referred to as “Shark Binh”), on charges of fraudulent appropriation of assets.
• The Loss/Funds Raised: Police determined that from August to November 2021, the group sold 33.2 billion AntEx tokens to approximately 30,000 investors, raising about 4.5 million USDT (~117 billion VND) into their exchange wallet. Some sources reported that the authorities had frozen related assets valued at around 900 billion VND—this figure reflects the value of the frozen assets, not necessarily the final “vanished” amount; figures may vary during the investigation process.

5) Other Cases, Common Models

In addition to the major cases listed above, numerous smaller projects and groups have also been dismantled by domestic authorities, with cumulative total losses ranging from tens of billions to hundreds of billions of VND, depending on the case. Typical forms include: (i) “virtual” mining farms (without real equipment), (ii) projects earning from NFT/game “products” with extremely thin market value, (iii) lending/staking platforms promising high fixed interest rates, and (iv) disguised multi-level marketing schemes that pay early investors with money from new investors. Many reports and warnings from regulatory bodies have highlighted the trend of “fundraising through multi-level marketing models, promising high profits” as a common tactic.

II. The Scam Mechanism and Why Investors Fall for the Trap

1) Using Technology as a Cloak of Legitimacy

Blockchain and tokens sound highly “technical” and “modern.” When presented using specialized terms (smart contract, liquidity, staking, bridge, hot/cold wallets…), many people mistakenly believe there is a “technical foundation” and thus, the project is trustworthy. The Reality: Scammers use technological jargon to mask a Ponzi scheme (paying old investors with new investors’ money) or to facilitate an exit scam.

2) Enticement with Promises of Fixed/Massive Returns

Promises like “5–10% profit/month,” “viral commissions” are often a sign of a multi-level marketing scheme. In the real financial market, returns cannot be both steady, high, and risk-free.

3) Using Celebrities/Influencers to Build Trust

Projects leverage influential figures (business people, “Sharks,” KOLs) to create credibility—leading followers to check less and trust quickly. AntEx is a prime example, relying on reputation to attract large capital.

4) “Fake” Liquidity or Dependence on Intermediary Platforms

Many tokens only trade on a few small exchanges with thin liquidity, or the withdrawal feature is locked when needed. In such situations, investors cannot sell to exit their positions.

5) Ambiguous Legal Structure

Projects present well or set up headquarters abroad, use “non-binding” contracts, or fail to clearly disclose who is legally responsible, making future legal pursuit difficult.

III. Red Flags — 12 Things Investors Must Check Immediately

1. Promises of high, fixed, stable returns (e.g., >2%/week) — Suspect a Ponzi scheme.
2. Low liquidity / token only listed on small or untrustworthy exchanges.
3. No open-source code or transparent smart contract, or the contract is easily “breakable” (admin keys can withdraw everything).
4. Anonymous team or conflicting information, unable to prove real-world experience.
5. Relying more on celebrity endorsement/influencers than on technical data.
6. Clear commission policies for recruiting F1–F2–F3 — A sign of a multi-level marketing scheme.
7. Application/website makes withdrawal functions complicated, has long waiting times, or extended “maintenance.”
8. Promises of 100% capital reimbursement/guarantee — Financial assets always carry risk.
9. Excessive advertising on social media, private groups, urging quick participation before the offer expires — Creating a sense of FOMO (Fear of Missing Out).
10. No independent security audit report for the smart contract or multisig wallet.
11. Vague financial data, no transparent cash flow report.
12. When there are many complaints, the project team stops responding or switches to evasive “explanations” — High caution is warranted.

The typical cases mentioned above all exhibited one or more of these signs: Pincoin/iFan used a structured reward model, Sky Mining advertised mining equipment while operations were unclear, and AntEx used a celebrity to boost confidence.

IV. How to Verify a Crypto Project (Practical Checklist)

Before committing funds to a token/coin/NFT/blockchain game project, run through this checklist:

• Verify the Team: Check LinkedIn, professional background, previous projects. If it’s all profile pictures or vague information — avoid it.
• Read the Whitepaper & Audit: Is the whitepaper polished, does it contain realistic figures and a roadmap? Has the smart contract been audited by a reputable third party? (Seek out the audit report).
• Check Tokenomics: Total supply, distribution mechanism, vesting (lock-up period) for founders/VCs—if founders can immediately dump tokens, the risk is high.
• Observe Liquidity: Where is the token traded? Daily volume? Thin liquidity is easily manipulated.
• Check Legal & Terms: Are there refund policies, a legal mechanism for the issuing company? Where is it registered?
• Search for Warnings: Have Google, news sites, forums, media, or regulatory agencies issued any warnings about the project? (e.g., Ministry of Public Security, local financial inspectorate).
• Try a Small Amount: If you still want to participate, only allocate a small portion of “risk” capital that you can afford to lose.
• Check the Community: Is the community mainly focused on “recruitment”? Many internal advertisements and little in-depth discussion is a warning sign.
• Examine Cash Flow: Are there unusual withdrawals from the project’s cold wallets? Are large wallets (whales) publicly disclosed?
• Do Not Borrow to Gamble: Absolutely do not use borrowed money, money from selling your house, or future funds for non-transparent projects.

V. Specific Recommendations for Investors in Vietnam

• Don’t be fooled by trust in celebrities: Celebrities can be paid for PR; reputation is no substitute for legal documents and technical evidence. (AntEx is a recent example).
• Diversify — and keep reserve funds: Do not place more than 5–10% of your risk assets into new tokens, especially if they lack an audit.
• Keep money on reputable exchanges/wallets: If a project asks you to transfer money to a strange personal wallet or an unclear contract, stop.
• Save Transaction Evidence: If you participate, keep all invoices, emails, transaction screenshots, and messages for easy complaint filing if needed.
• Report and Complain Promptly: If you detect signs of fraud, report it to the authorities (local economic police) and collect evidence. (Hanoi Police called on victims to report in the AntEx case).
• Self-Educate on Blockchain Basics & Security: Knowing the difference between custodial and non-custodial wallets, private keys, smart contracts, liquidity pools… will help you be less easily manipulated.
• Be cautious of the “buy expensive NFT, sell cheap” model: If you need others to buy in order for you to profit, that is a signal of risk. (Many NFT-game cases in Vietnam also used this mechanism to attract capital).

Caution is Never Too Much

Cryptocurrency and blockchain have great potential, but they are also “fertile ground” for many fraudulent schemes where the legal framework, transparency, and market education have not yet fully developed. The cases of Pincoin/iFan, Sky Mining, Wingstep / Naga Kingdom, AntEx… have not only caused losses to tens of thousands of people but are also a lesson: reputation is no substitute for verification, marketing is no substitute for technical transparency, and promised returns are no substitute for legal documents.

• If you are an individual investor: Maintain a reasoned skepticism, check all documents, demand independent audits, and only use capital you can afford to lose.
• If you are a regulatory body or policymaker: Accelerate the legal framework, publish warning lists, and intensify digital financial education.