Vietnamese authorities have dismantled what they described as the country’s largest crypto fraud to date, arresting the ringleader and accomplices behind a multibillion-dollar Ponzi scheme built around the digital token Paynet Coin (PAYN).
The Phu Tho Provincial Police said on Monday that the suspects lured thousands of victims in Vietnam and overseas into an illegal multilevel marketing (MLM) operation disguised as a crypto investment platform, according to a report by local media outlet Công an Nhân dân.
Using websites such as FMCPAY.com and AFF2024.com, the group promised investors monthly returns of 5%–9% and additional commissions for recruiting others. Funds from new participants were used to pay earlier investors, a classic Ponzi structure, per the authorities.
Investigators identified Nguyen Van Ha, 45, from Gia Lai Province, as the mastermind. Despite having no formal IT training, Ha allegedly commissioned developers to create the PAYN blockchain, a sophisticated security system and a rewards program designed to appear legitimate.
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PAYN scam falsely claimed US registration
The scheme also misled participants by claiming PAYN could be used to book flights and hotels and that its exchange was registered in the United States, claims authorities say were fabricated.
To build trust and attract more victims, the group organized lavish seminars at five-star venues, portraying PAYN as a legitimate, high-return investment. Authorities allege Ha personally siphoned about $200 million.
At the time of the arrests, money was still flowing into the platform from investors in countries including India and the Philippines, authorities said.
According to the Vietnamese online newspaper VnExpress, Police have seized and frozen assets worth $38 million, including cash, foreign currencies and real estate. Per the report, 20 have been arrested in the case so far.
Ha, his deputy Phan Viet Lap, and other defendants face charges of violating MLM regulations and using electronic networks to appropriate property under Vietnam’s Penal Code.
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Crypto hack losses hit $2.47 billion in H1
Losses from crypto hacks, scams and exploits reached $2.47 billion in the first half of 2025, according to CertiK. While Q2 saw $800 million lost across 144 incidents, a 52% drop in value and 59 fewer hacks compared to Q1, the year’s total so far is already up almost 3% from 2024.
After accounting for $187 million in recovered funds, adjusted losses stand at about $2.2 billion.
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