Vietnam Dismantles $200 Million Paynet Coin Crypto Pyramid Scheme

Vietnamese authorities have announced the dismantling of a significant cryptocurrency-based pyramid scheme, Paynet Coin, which allegedly defrauded thousands of investors out of an estimated $200 million. This large-scale operation underscores the persistent challenges in regulating the volatile digital asset landscape and protecting participants from sophisticated financial fraud, with total damages estimated to be in the hundreds of millions of dollars.

• The Paynet Coin scheme, orchestrated by Nguyen Van Ha, defrauded thousands of investors.
• Victims were enticed with promises of lucrative monthly returns of up to 9% and recruitment bonuses.
• The operation functioned as a classic Ponzi scheme, using new investor funds to pay earlier participants.
• Paynet Coin falsely presented itself as a U.S.-registered entity offering legitimate services.
• The scheme attracted both domestic and international victims, including individuals from India and the Philippines.
• Authorities have successfully frozen and confiscated approximately $38 million in assets related to the fraud.

Scheme Mechanics and Deceptive Practices

The scheme, orchestrated by 45-year-old Nguyen Van Ha, reportedly attracted investors through online platforms such as FMCPAY.com and AFF2024.com. Participants were promised lucrative monthly returns of up to 9% along with bonuses for recruiting new members. Investigations by Vietnamese police revealed a classic Ponzi structure, where funds from new entrants were systematically used to pay earlier investors, creating an illusion of profitability.

To establish credibility, Paynet Coin was falsely presented as a U.S.-registered entity offering legitimate services, including flight and hotel booking capabilities, and operating a purportedly registered exchange. The organization further enhanced its deceptive façade by hosting elaborate promotional presentations in five-star hotels, drawing in thousands of victims not only within Vietnam but also internationally, notably from India and the Philippines.

Law Enforcement Action and Asset Recovery

Police in Phu Tho province confirmed the freezing and confiscation of assets totaling approximately $38 million, which included significant amounts of cash, foreign currency, and real estate holdings. Authorities allege that Nguyen Van Ha personally diverted around $200 million from the scheme. Ha, along with his deputy Phan Viet Lap and other co-conspirators, face charges stemming from violations of multi-level marketing regulations and the illegal appropriation of property through electronic networks.

Global Context and Regulatory Imperatives

This Vietnamese crackdown highlights a broader global trend of large-scale cryptocurrency fraud. For instance, in July 2025, Ukrainian authorities uncovered a similar extensive crypto scam that targeted citizens from Germany, Slovakia, the United States, Canada, and the Czech Republic. In that case, perpetrators, often fluent in foreign languages, impersonated employees of non-existent investment companies to solicit funds. Such incidents, including the significant $40 billion fraud involving Terraform Labs co-founder Do Kwon, underscore the critical imperative for enhanced regulatory oversight and robust investor due diligence within the burgeoning cryptocurrency sector globally.