Vietnamese authorities have arrested five suspects in connection with one of the country’s largest-ever crypto fraud cases, accusing them of orchestrating a $394 million scheme under the name “Matrix Chain.” The arrests follow a 200-day investigation involving elite officers and special task forces from the Ministry of Public Security.
The scam lured investors with promises of “extraordinary profits” and high commission structures. Victims paid a symbolic entry fee of 1 USDT to access the Matrix Chain platform, where they were then encouraged to purchase and promote MTC, a digital token authorities now confirm was entirely worthless.
Investigators say the group operated a multi-level marketing network spanning three major regions in Vietnam. Roughly 40% of funds raised were distributed to “regional leaders” tasked with expanding the operation. Another 5% was used for promotional activities, while the remainder reportedly funded luxury real estate purchases and other personal expenses.
The five suspects—four men and one woman, born between 1980 and 1991—are now under criminal investigation. Police have searched their homes and workplaces and have not ruled out further arrests as the probe deepens.
Matrix Chain Mastermind Used Fake Token, Telegram to Lure Victims
Police identified Nguyen Quoc Hung as the alleged ringleader behind the Matrix Chain fraud—a pyramid-style operation that defrauded investors of nearly $400 million. Authorities say Hung channeled millions into real estate investments in cities across Vietnam while promoting the scheme online through aggressive marketing.
Investigators reported that the Matrix Chain project attracted more than 185,000 registered users, with 394.2 million USDT flowing through wallets associated with the platform—many of them hosted on SafePal. Victims were encouraged to increase deposits via promotional webinars and training sessions hosted on Facebook and Telegram, where rewards were offered based on recruitment tiers.
Hung admitted to hiring anonymous developers via Telegram in early 2023, paying around $20,000 to build the Matrix Chain platform and launch the MTC token. He and a co-conspirator allegedly retained control of a massive wallet containing 100 million MTC tokens, manipulating prices to create the illusion of value and attract larger deposits.
Authorities are now investigating dozens of additional individuals tied to the operation, pointing to a broader crackdown on crypto fraud in the region.
Vietnam Eyes Regulation as Crypto Adoption Remains High
Despite the Matrix Chain scandal, Vietnam remains one of the world’s leading crypto adopters. A recent report from Chainalysis ranked the country fifth in the 2024 Global Crypto Adoption Index—down from third place the year before, but still indicative of widespread grassroots engagement.
Amid rising concerns over scams and investor vulnerability, Prime Minister Phạm Minh Chính in March directed the Ministry of Finance and the State Bank of Vietnam to fast-track the development of a formal regulatory framework for digital assets. The directive emphasized consumer protection and innovation, signaling a shift toward structured oversight.
The move reflects Vietnam’s efforts to balance financial innovation with risk management—seeking to avoid repeats of massive frauds like Matrix Chain while maintaining its position as a global leader in crypto activity.
Quick Facts
- Vietnamese police arrested five suspects linked to the $394M Matrix Chain scam
- The platform attracted over 185,000 users with promises of high returns
- Mastermind Nguyen Quoc Hung used Telegram and fake tokens to drive recruitment
- Over 394 million USDT passed through project-linked wallets, many via SafePal
- Authorities are investigating dozens more in a sweeping crypto fraud crackdown
