Vietnamese police have arrested 20 people in the country’s largest known cryptocurrency scam, involving the Paynet Coin (PAYN) token. Authorities described the scheme as a multi-billion dollar Ponzi operation that targeted thousands of victims in Vietnam and abroad.
The Phu Tho Provincial Police said on Monday the group ran an illegal multilevel marketing (MLM) network disguised as a cryptocurrency investment platform. Victims were recruited through promises of monthly returns of 5% to 9% and commissions for bringing in new participants.
Investigators found that the operation relied on FMCPAY.com and AFF2024.com to promote PAYN. Funds from new investors were used to pay existing ones, matching the structure of a Ponzi scheme.
Nguyen Van Ha Named as Scheme Leader
Authorities identified Nguyen Van Ha, 45, from Gia Lai Province, as the mastermind. Despite lacking formal IT training, Ha allegedly hired developers to create the PAYN blockchain, security features, and a rewards program to present the token as legitimate.
The scam also claimed that PAYN could be used for booking flights and hotels. Police said the group falsely stated that the PAYN exchange was registered in the United States.
To attract more victims, the suspects organized events at five-star venues, portraying PAYN as a legal high-yield investment. According to police, Ha personally obtained about $200 million from the operation.
Ongoing International Victim Involvement
Even at the time of the arrests, funds were still entering the platform from countries including India and the Philippines. Police seized and froze $38 million in assets, which included cash, foreign currency, and real estate.
The arrests included Ha’s deputy, Phan Viet Lap, and other members of the network. They face charges of violating MLM regulations and using electronic networks to appropriate property under Vietnam’s Penal Code.
Crypto Fraud Losses Continue to Climb in 2025
The Paynet Coin Ponzi scheme adds to global cryptocurrency fraud losses this year. According to blockchain security firm CertiK, total losses from scams, hacks, and exploits in the first half of 2025 reached $2.47 billion.
In Q2 2025, losses amounted to $800 million across 144 incidents. This figure marked a 52% decline in value and 59 fewer cases compared to Q1. Despite the quarterly drop, year-to-date losses are already 3% higher than 2024.
After adjusting for $187 million in recovered funds, net losses for the year stand at about $2.2 billion.
