In mid-August 2025, Vietnam faced its most staggering cryptocurrency scandal yet: the unraveling of a sprawling multi-level marketing (MLM) Ponzi scheme built around a token called Paynet Coin (PAYN). The case revealed the intricate tactics used to inspire trust and greed in thousands of victims, while shining a glaring light on evolving threats in the unregulated crypto world.
The scandal reached its tipping point on August 11 12, 2025, when the Phu Tho Provincial Police, alongside investigative units of the Ministry of Public Security, launched coordinated raids in Phu Tho, Hanoi, and Ho Chi Minh City. Their mission: dismantle a transnational criminal network that had siphoned off billions of US dollars from investors through the sale of PAYN tokens. Unlike legitimate businesses that use Crypto MLM Software to maintain transparency and compliance, this network operated through websites like FMCPAY.com and AFF2024.com, offering investment packages promising monthly returns of 5% to 9%, plus referral commissions, textbook Ponzi mechanics disguised as crypto investment.
The group’s strategy was chillingly effective:
Basically, the money from new investors was used to pay the old ones a typical Ponzi scheme hidden under the name of crypto.
Authorities arrested 20 individuals, including Nguyen Van Ha and his deputy Phan Viet Lap, charging them with violating MLM business regulations and misappropriating assets using computer networks. The personal financial damages were significant.
Investigators estimate Ha personally pocketed as much as $200 million. Though staggering, the total scheme siphoned in much more. As of the bust, assets worth approximately $38 million in cash, foreign currency, and real estate had been seized or frozen.
Vietnamese-language sources reported the seizure of around 800 billion Vietnamese đồng (roughly $34 to 38 million), including substantial amounts in cash, alongside property and other high-value items. Geographically, the scam ensnared thousands of victims within Vietnam and abroad, with evidence showing active investment flows from countries like India and the Philippines even as authorities closed in.
The bust of Paynet Coin is no ordinary crackdown it marks Vietnam s largest crypto fraud to date, and signals a shift in enforcement priorities. Legal authorities appear to be elevating crypto scams to the level of organized financial crime. Investigations continue, with a focus on tracing the entire network and recovering assets for the victims.
Furthermore, this case adds to growing global alarm: according to blockchain security firm CertiK, crypto-related fraud, hacks and scams in the first half of 2025 amassed $2.47 billion in losses, with net losses of about $2.2 billion after recovery.
1. Due Diligence Matters More Than Ever Promises of unreal returns (5 to 9% monthly) are a red flag especially when paired with recruitment incentives and vague utility.
2. Legitimacy by Presentation Is Not Enough Even a polished blockchain, US-registered claims, or travel-friendliness are easy to fake. Always validate tokens against reputable exchanges and regulatory bodies.
3. MLM Structures + Crypto = Danger The PAYN scheme combined two high-risk elements: the opacity of cryptocurrency and pyramid-style recruitment creating a perfect storm for fraud.
4. Enforcement Is Catching Up. Vietnam’s robust crackdown is encouraging, but forensic investigation and cross-border cooperation remain essential for justice and deterrence.
Vietnam’s uncovering of the Paynet Coin scheme illustrates the deadly fusion of greed and technological glamour. Thousands were duped, tens of millions of dollars frozen, and one man stands accused of orchestrating the morally bankrupt illusion of smooth crypto gains. That Vietnam exposed and dismantled this massive MLM Ponzi structure is a commendable step but the broader lesson echoes universally: in the rapidly evolving crypto world, skepticism, oversight, and vigilance are more vital than ever.
For genuine businesses, investing in transparent and compliant MLM software is crucial, as it not only ensures proper tracking and accountability but also helps distinguish legitimate direct selling operations from fraudulent crypto-MLM scams.
How Vietnam Uncovered Paynet Coin: A Massive Crypto MLM Ponzi Scheme was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.
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