Vietnam Uncovers $394M Matrix Chain Crypto Scam, Arrests Made – Coincu

A massive cryptocurrency scam operation known as Matrix Chain was dismantled by Vietnamese authorities in Dong Nai Province, resulting in the arrest of five individuals on May 28, 2025.

The scam involved manipulating tokens to defraud $394.2 million USDT from over 138,000 investors through pyramid schemes.

Vietnam Arrests Key Figures in $394M Crypto Fraud

Vietnam’s authorities dismantled a major crypto scam called Matrix Chain, arresting five key individuals. The operation, led by Nguyen Quoc Hung, involved creating a fraudulent digital currency platform specifically for defrauding investors. Upon investigation, authorities discovered the setup of a pyramid scheme targeting numerous investors with fabricated predictions and returns.

The fraudulent scheme managed to collect $394.2 million USDT by exploiting 138,000 accounts. Initial profits by early investors were revealed to be from new entrants’ funds, maintaining a false aura of profitability. Funds were then strategically transferred through SafePal wallets, further complicating the detection of illicit activities. By generating fake demand and supply, the scam resulted in several property purchases using illegal means.

Nguyen Quoc Hung, the main suspect in the Matrix Chain scam, reportedly expressed, “I didn’t expect the operation to get this big; we only wanted to help people invest.” – Vietnam News

The Vietnamese Ministry of Public Security has issued a warning on similar criminal activities. Their immediate intervention has halted the fraudulent operation, providing some compensation prospects for affected investors. Area-specific task forces have been noted for their efficiency in quickly bringing the culprits to justice, as investigations continue into related deceptive tactics.

Matrix Chain Scam Echoes MLM Tactics Amid Regulatory Gaps

Did you know? The Matrix Chain scam aligns with previous pyramid schemes by exploiting multi-level marketing tactics and misleading promises, replicating strategies used in other high-profile cryptocurrency scams.

CoinMarketCap data shows a sharp decline in Moonft (MTC) metrics. The current price is $0.01, while its market cap stands at $3,990.06. The token’s 24-hour trading volume is stagnant. Over 90 days, Moonft has decreased by 79.27%, reflecting growing investor caution.

The Coincu research team highlights that technological exploitation and regulatory laxities in rapidly evolving markets contribute significantly to such fraudulent activities. By implementing robust checks, the history of cryptocurrency fraud can be mitigated, encouraging safer market dynamics globally.

Cryptocurrency scams like Matrix Chain emphasize the need for increased security and regulation in the digital currency sector to prevent further investor losses.