Vietnam Busts Record-Breaking Crypto Ponzi Scheme Centered on Paynet Coin

Vietnamese authorities have dismantled what they claim is the nation’s largest-ever crypto fraud operation, following the arrest of the ringleader behind a multibillion-dollar Ponzi scheme built around the digital token Paynet Coin (PAYN).

According to the Phu Tho Provincial Police and local media outlet, the group was running an illegal multilevel marketing (MLM) network disguised as a legitimate cryptocurrency investment platform.

Using websites such as FMCPAY.com and AFF2024.com, the perpetrators lured investors with promises of 5%–9% monthly returns and generous referral commissions for bringing in new participants.

Authorities say the scheme followed the classic Ponzi playbook—using funds from new investors to pay earlier participants—creating the illusion of consistent profitability.

The Mastermind and Operation Details

Investigators have identified Nguyen Van Ha, a 45-year-old resident of Gia Lai Province, as the mastermind.

Despite having no formal IT training, Ha allegedly hired developers to create the PAYN blockchain, implement an elaborate security system, and launch a rewards program—moves intended to disguise the true nature of the operation.

To further boost credibility, the scammers falsely claimed that PAYN could be used to book flights and hotels and that it was registered as a crypto exchange in the United States—claims that authorities have since confirmed were completely fabricated.

The group also hosted lavish seminars at luxury venues to project an image of legitimacy. Authorities allege Ha personally embezzled around $200 million from the operation.

By the time of the crackdown, the Paynet Coin scheme had drawn in thousands of victims across Vietnam and overseas, including investors from India and the Philippines.

At the moment of arrest, funds were still flowing into the platform from investors abroad. Police have so far seized or frozen assets worth $38 million, including cash, foreign currency, and real estate.

In total, 20 suspects have been arrested, facing charges ranging from violating MLM regulations to using electronic networks to misappropriate property—offenses under Vietnam’s Penal Code.

Rising Crypto Crime Concerns

The bust comes amid ongoing concern over increasing crypto-related crime. According to blockchain security firm CertiK, losses from crypto hacks, scams, and exploits reached $2.47 billion globally in the first half of 2025.

While incident value dropped 52% in Q2 compared to Q1, year-to-date losses remain nearly 3% higher than in 2024. After factoring in $187 million in recovered funds, the net global loss still stands at approximately $2.2 billion.