The Hanoi City Police has cooperated with the Cau Giay District Police to dismantle a fraud ring that misappropriated assets by calling for investment in the cryptocurrency project CrossFi.
In this case, the authorities have arrested 8 suspects and seized assets worth up to 500 billion VND. The authorities have also seized many valuable assets including luxury cars, real estate and cash. The case is still under further investigation.
The group of suspects took advantage of people's desire for quick profits by inviting them to participate in buying the MPX energy token to exploit the XFI token of the CrossFi project. They made attractive advertisements such as:
- Huge profits: Promising high returns without deep understanding of blockchain technology.
- Safe investment model: Claiming this is a legal project with strong growth potential in the future.
- Expansion strategy: Encouraging participants to invite more new people to receive more commissions, creating a ripple effect.
In fact, this is just a financial fraud scheme following the Ponzi model. Later investors will be the source of money to pay the earlier ones, and when the system can no longer operate, a large number of investors will lose all their assets.
Some victims have been deprived of a very large amount of money, including a case of losing up to 13 billion VND.
To expand the network, the fraud group organized many closed seminars, using the images of influential people to attract more participants.
