Vietnam Crypto Boss Scams Investors with Fake Banh Mi Chain

Colonel Pham Manh Hung, the deputy head of the Ministry’s Department of Economic Security, stated that Vuong Le Vinh Nhan, also known as Eric Vuong, and his associates created the VNDC cryptocurrency and ONUS exchange in 2018. The group expanded their ecosystem by issuing multiple digital tokens, including VNDC, ONUS, and HNG, and selling them to investors through the ONUS exchange. Authorities allege that the group misled investors by claiming VNDC was backed 1:1 by deposits in major Vietnamese banks, when in reality, no such reserves existed.

To further entice investors, Nhan’s team staged promotional events, announcing VNDC’s investment in a banh mi chain called Snack House, with supposed plans for 30 outlets in Can Tho City, 20 in other Mekong Delta provinces, and 1,000 nationwide. Consumers were told they could use VNDC vouchers to purchase banh mi at Snack House outlets, but the entire scheme was fabricated. The group also falsely claimed partnerships with companies like JSC and Go24 to launch an e-commerce platform called VNDC Supermarket, and falsely advertised VNDC’s listing on a Singapore exchange.

Nhan’s team recruited social media influencers to attract investors, who in turn recruited agents to promote the tokens. As investor participation increased, the group manipulated trading by creating fake buy and sell orders to control token prices. Eventually, they ceased the artificial trades and media campaigns, leading to a collapse in the value of the tokens. Investigators found that Nhan later launched new crypto projects using the same fraudulent model. Colonel Hung described the operation as a “large-scale ecosystem that defrauded many people”.

The Ministry of Public Security has confirmed the arrest and detention of Nhan, 42, CEO of a digital asset management company; Tran Quang Chien, 35, a technical administrator of the ONUS exchange; and Ngo Thi Thao, 32, director of a jewelry company. They face charges of using computer networks and electronic means to appropriate assets. Additionally, four others face similar charges, and one suspect is charged with money laundering. Police seized computers, phones, electronic evidence, and assets linked to the crimes, preventing suspects from destroying documents or hiding property and limiting further losses to victims.

The incident highlights the risks associated with investing in unregulated cryptocurrencies and the potential for fraudulent schemes. As authorities continue their investigation, further details about the extent of the scam and the number of victims are expected to emerge. Investors should exercise caution and conduct thorough research before investing in any cryptocurrency project.