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|Thousands of investors were cheated by methods using virtual currency|
After a time of operation and calling for multi-level capital contribution, virtual money projects named ICO (initial coin offering) are in a chaotic situation as more and more fanpages on social networks condemn these fraudulent organisations.
Yesterday, a crowd of people has visited the headquarters of Modern Tech Co., Ltd. to protest against the company’s appropriation of over VND15 trillion ($0.66 billion) in virtual money, as well as ask relevant agencies to investigate. This incident is now called “the largest multi-level fraud in Vietnam.”
People said that Modern Tech, Ifan, and Pincoin are three capital mobilisation projects. Ifan and Pincoin authorised Modern Tech Co., Ltd. to be their legal representative in Vietnam.
This company has held many events in Hanoi and Ho Chi Minh City to seek investors and call investment into virtual currency, along with committing 48 per cent of profit every month and payback the original investment within four months. These campaigns featured pictures of celebrities as representatives of the projects, such as singers Dam Vinh Hung, Ung Hoang Phuc, Le Quyen, and Son Tung.
After collecting a large fund from investors, Ifan did not pay bonus by cash, they changed the form of bonus payment into virtual currency, that was equivalent to $5 per coin. Then the price kept declining to eventually hit $0.01, meaning the investors lost almost all of their money.
On the other hand, all celebrities have announced that the multi-level coin groups used their names without permission to lure investment to these projects.
This is a fraudulent activity under the multi-level model which is issuing virtual coin through ICO (similar to stock IPOs) without the management of the State Securities Commission of Vietnam.
As a result, 32,000 victims have been swindled by this ICO ring, losing a total investment of VND15 trillion ($0.66 billion). All of the investors claimed that they did not get any profit. Thousands of people have lost tens, even hundred thousand dollars through these swindlers.
This case warns all people about fraud by imitating capital contribution and profit sharing arrangements to cover schemes to appropriate property.
Earlier, Bitconnect was also known as the largest case of swindling through virtual currency, causing losses for hundreds of account holders, including Vietnamese victims. This case was investigated by the US Securities and Exchange Commission.