Vietnam Police Bust Billion-Dollar Crypto Ponzi Ring Behind Paynet Coin Scam
Vietnam's police have made a significant breakthrough in their efforts to combat cryptocurrency scams, arresting 20 people involved in the country's largest crypto scam, a multibillion-dollar Ponzi scheme built around the digital token Paynet Coin (PAYN). The Phu Tho Provincial Police announced on Monday that they had dismantled what they described as Vietnam's largest crypto fraud to date, with the ringleader and accomplices now facing charges.
The scammers, who used websites such as FMCPAY.com and AFF2024.com, promised investors monthly returns of 5%–9% and additional commissions for recruiting others. However, instead of investing in a legitimate cryptocurrency project, the funds were used to pay earlier investors, a classic Ponzi structure.
Investigators identified Nguyen Van Ha, 45, from Gia Lai Province, as the mastermind behind the Paynet Coin scam. 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. 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. However, it soon became clear that the scheme was nothing more than a massive Ponzi scheme, with Ha personally siphoning off around $200 million from unsuspecting investors.
At the time of the arrests, money was still flowing into the platform from investors in countries including India and the Philippines, authorities said. Police have seized and frozen assets worth $38 million, including cash, foreign currencies and real estate.
The Scale of the Scam
The Paynet Coin scam is believed to be one of the largest crypto scams in history, with losses estimated in the multibillion-dollar range. According to Vietnamese online newspaper VnExpress, the scam involved over 10,000 victims in Vietnam and overseas.
The Consequences for the Ringleader
Nguyen Van Ha, the mastermind behind the Paynet Coin scam, and his accomplices face charges of violating MLM regulations and using electronic networks to appropriate property under Vietnam's Penal Code. The full extent of their involvement in the scam is still being investigated by authorities.
The Broader Impact on Crypto Security
The bust of the Paynet Coin scam highlights the ongoing threat posed by cryptocurrency scams and Ponzi schemes. According to CertiK, losses from crypto hacks, scams and exploits reached $2.47 billion in the first half of 2025 – a 52% drop in value compared to the same period last year.
Despite this progress, the total losses for the year are still up almost 3% from 2024, with adjusted losses standing at around $2.2 billion after accounting for $187 million in recovered funds. As cryptocurrency continues to grow in popularity and value, it is essential that authorities and regulators remain vigilant in their efforts to combat these types of scams.