Police in Ho Chi Minh City are coordinating with relevant agencies to examine an alleged cryptocurrency fraud involving over 32,000 people. (Photo: tienphong.vn)
HCM City (VNA) – Police in Ho Chi Minh City are coordinating withrelevant agencies to examine an alleged cryptocurrency fraud involving over 32,000people and a sum of 15 trillion VND (666 million USD).
Vice Chairman of the municipal People’s Committee Le Thanh Liem said he hasdirected police to investigate the case.
In December 2017, the committee issued a document directing the management andsettlement of cryptocurrency and e-money in the city, he said.
Cryptocurrency is considered an illegal non-cash payment method in Vietnam. Theuse of virtual money as a means of payment is prohibited and will be handledaccording to the country’s legal regulations, he added.
To ensure safety and security of monetary activities, the municipal People’sCommittee requested relevant units to strengthen inspection to promptly detectand address legal violations and minimise possible risks affecting businessesand people.
On April 8, dozens ofpeople gathered at the headquarters of the Modern Tech JSC Co at 68 Nguyen HueStreet, District 1, to protest the “biggest digital money fraud in history” committedby the company.
They claimed that Modern Tech advertised the cryptocurrency iFan to potentialinvestors, promising them huge monthly interest of at least 48 percent, incash, and four months as the maximum time for full payback. Those who couldinvite others to buy the digital currency would also enjoy a commission of 8percent.
The only condition for the investors was that they had to buy at least 1,000USD worth of the digital money.
More than 32,000 investors poured some 15 trillion VND into buying virtualmoney.
However, Modern Tech changed their policy following a global cryptocurrencycrash late last year which caused iFan’s value plummeted to about 1 US cent periFan.
The company no longer paid interest and principle back to the investors incash, but in iFan currency. Modern Tech set iFan’s value at 5 USD, much higherthan the market price, causing losses to the customers.-VNA
VNA
