In a stroke of luck, Vietnamese authorities were able to successfully dismantle a massive cryptocurrency scam organized by a company called ‘Million Smiles,’ protecting around 300 victims from financial exploitation.
The scheme, built around a fake token called QFS (Quantum Financial System), had defrauded approximately 1.17 million dollars (30 billion VND) from around 400 people and 100 businesses.
The fake crypto business relied on “aggressive” marketing tactics, including “false promises of financial freedom, exaggerated returns, and spiritual claims tied to ancestral wealth.”
Victims were encouraged to invest from 4-5 million VND ($190) per person to 39 million VND ($1,350) per business. Authorities reported that QFS tokens were advertised as a gateway to a flexible financial system, promising access to unsecured funding and significant wealth.
A Coordinated Police Attack That Led to Its Explosion
As reported by Vietnam’s national television broadcaster, VTV, Hanoi City Police have discovered plans by Million Smiles to host a promotional conference in Bao Son Paradise, Hanoi, on December 24, 2024, targeting more than 300 participants.
This event was set to increase their fraud campaign, to lure more investors into buying fake QFS tokens. Acting quickly, the Ministry of Economic Security intervened a few hours before the conference, to prevent further damage.
During the planned raid, law enforcement arrested the General Director of Trieu Nu Cuoi Company (parent company of Million Smiles) and seven key people related to the scam.
Authorities seized important evidence, including financial records, advertising materials, and computers, revealing the extent of crypto counterfeiting activity.
Initial investigations showed that Million Smiles had carefully created an image of legitimacy. Offices are established in luxury homes and prominent business districts, funded entirely by donations from investors.
Online Zoom webinars are often hosted by corporate leaders, who paint wild ideas of financial success associated with QFS ownership. They falsely claim that QFS tokens are backed by historical treasures and assets inherited from the “Ho Chi Minh Palace.”
Victims, including small business owners and people from modest financial backgrounds, are lured by the promise of becoming multi-millionaires once QFS token prices rise. However, the investigators found that there are no tangible crypto assets or real backing behind the QFS tokens, making them completely useless.
Deceptive Tactics and Public Advice from Executives
Another investigation revealed that the leaders of this company did not have a lot of money. Instead, the funds raised from new investors are redirected to maintaining the illusion of success, including the luxury of their offices and the hosting of large promotional events.
Another victim, a resident of Yen Bai who relied on forestry for his livelihood, invested 39 million VND in QFS tokens, believing in the promise of wealth. Months later, he received no refund. This story is typical of hundreds of others who relied on Million Smiles but suffered financial losses.
Hanoi City Police emphasized that despite repeated warnings against unregulated cryptocurrency systems, many people continue to fall victim to financial illiteracy and the lure of easy wealth.
Authorities urged residents to verify investment opportunities, be wary of exaggerated promises, and report any suspicious activity to law enforcement agencies.
The featured image was created with DALL-E, a Chart from TradingView
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