Vietnam-based Crypto Start-Up Suspected of Embezzling $660 Mln
April 12, 2018
The State Bank of Vietnam along with the country’s police is investigating the matter of probable cryptocurrency fraud that is likely to be the greatest ever in the industry. Local start-up Modern Tech is accused of embezzling funds to the tune of more than $660 mln.
Last Sunday on April 8 dozens of people gathered in Ho Chi Minh City, Vietnam, near the Modern Tech office holding protest signs and charging the company with scam. The location has proven to be a fake and housing no start-up.
The company presented itself as official Vietnamese representative of the two cryptocurrencies: Ifan and Pincoin allegedly registered in Singapore and Dubai respectively. Each token had its own ICO done.
Seven Vietnamese entrepreneurs turned to be the managers to the project.
Ifan was said to be the most cutting-edge social network for celebrities and performers to interact with their fans and selling their music and tickets, while Pincoin was portrayed as a perfect option for investing with up to 40%-income monthly.
Investors were convinced the price of both tokens to rise sharply as soon as they come to the secondary market and received a 8%-commission for each newly invited user. As time went, however, the commissions were paid in tokens rather than fiat, so that they could not be cashed out. On top of it the token price dropped together with the whole market in December.
Finally they just stopped to get in touch with the investors in January. The State Bank of Vietnam declared, cryptocurrencies have no legal status in the country so the affected investors will find it hard to get their losses paid for.