There has been a trail discovered for $658 million cryptocurrency scam in Vietnam which has forced the government to act immediately. Vuong Dinh Hue, the deputy prime minister has asked six ministries to get the verdict on the action at the earliest.
It is fairly evident from the evidence that the company located in Ho Chi Minh city was involved in fraudulent initial coin offerings. Bloomberg has also highlighted the remarks of Nguyen Xuan Phuc, the Prime Minister of Vietnam, where he warned the financial institutions to make any attempt towards such scams.
Like we all know, ICOs are used to raise funds where the investors are offered virtual coins. These are used at some point later. The USA is also trying to cope up with the scams by trying to find the ICOs which are running through illegal means. The SEC (Securities and Exchange Commission) is making it clear through its scrutiny that none of the frauds with ICO would be tolerated.
Few countries like China has completely banned the operation of ICO, while it is also true that not all of them share the same fraud.
Talking about the ICO fraud started by Modern Tech in Vietnam, there have been news about besieging of the company office is carried by the investors. However, the owner of the building reported that the company vacated the building a month earlier.
As per the reports, the company was supposed to be an authorized representative for Pincoin and iFan platform launches. When putting down in company’s word, while Pincoin claimed to be a cryptocurrency of sharing economy was a scheme based out of Dubai, IFan was a project of Singapore which was an Ethereum based social networking platform.
Reported to be the classical pyramid scheme, the company website promised 40% return to its investors but as per the report of Tuoi Tre New, none of the investors ever succeeded to withdraw in cash from the platform. As of now, the total number of investors reported to lose their money is 32000 losing in total $658 million.