Vietnamese authorities have uncovered a massive cryptocurrency fraud operation linked to Matrix Chain, leading to the arrest of key figures.
Arrests in the Matrix Chain Operation
On May 28, 2025, Vietnamese authorities arrested five suspects in the Dong Nai Province as part of a fraud scheme relating to the Matrix Chain platform. The leader of the operation, Nguyen Quoc Hung, created a digital currency platform with the intent to defraud investors. Investigations uncovered that pyramid scheme elements were used to attract funds.
Fraud Mechanisms and Consequences
The Matrix Chain scheme defrauded 138,000 investors out of $394.2 million USDT. Initial profits for early investors were derived from new participants' investments, creating a false sense of profitability. Funds were then transferred through SafePal wallets, complicating the investigations. Reports also mention property purchases made with the misappropriated funds.
Critique and Need for Regulation
The Vietnamese Ministry of Public Security has issued warnings about potential similar crimes. Task forces specializing in fraud prevention efficiently led to the quick arrest of the culprits. Overall, the Matrix Chain incident highlights the need for more stringent controls in the cryptocurrency sector and for better protection of investors from fraudulent attempts.
The uncovering of the Matrix Chain scheme underscores the growing issue of cryptocurrency fraud, emphasizing the importance of effective regulation and prevention of similar incidents in the future.
