Key Takeaways
- Million Smiles claimed QFS was connected to ancestral treasures and spiritual concepts to make it appear legitimate.
- The firm managed to rope in about 100 businesses and 400 individuals, convincing them to invest amounts ranging from 4–5 million dong (about $190) to 39 million dong ($1,350) for businesses.
The Hanoi City Police have dismantled a crypto scam that defrauded victims of around 30 billion Vietnamese dong (roughly $1.17 million). The scam, led by a company called Million Smiles, targeted hundreds of individuals and businesses across Vietnam, promising unrealistic financial returns and access to an exclusive financial system.
At the heart of the scheme was a crypto called QFS, or Quantum Financial System. Million Smiles used misleading marketing tactics to lure unsuspecting users. The firm claimed QFS was connected to ancestral treasures and spiritual concepts to make it appear legitimate.
The company also promised investors access to a unique financial ecosystem that would offer benefits such as funding without the need for collateral or interest. According to the police, by claiming spiritual ties and offering a path to financial freedom, the firm built trust among potential investors.
According to investigators, the scam managed to rope in about 100 businesses and 400 individuals, convincing them to invest amounts ranging from 4–5 million dong (about $190) to 39 million dong ($1,350) for businesses. Police described the scheme as elaborate and well-coordinated.
Authorities became aware of Million Smiles’ plans to hold a meeting with 300 potential investors to further promote the QFS token. Acting quickly, police intercepted the event and prevented the scam from spreading further. “This timely action stopped hundreds more from falling victim to the fraud,” an official from the Hanoi City Police Department said.
Following the intervention, police raided the company’s headquarters. They seized documents, computers, and other materials used in the operation. Investigations revealed that the QFS token was completely fabricated and had no legal recognition under Vietnamese law.
Vietnamese police have been increasingly cracking down on digital asset scams in recent months. In October, this year, a provincial Vietnam police force arrested five individuals and dismantled a Laos-based crypto scam ring tied with fraudulent wire transfers, leading to losses of approximately $700,000.
