Police bust $51mn cryptocurrency investment scam in Vietnam

The provincial Department of Public Security said on Sunday that it had taken into custody the alleged ringleaders, Mai Minh Tan, 30, from Dak Lak, and Tran Quang Ut, 39, from Gia Lai Province, on suspicion of fraudulent appropriation of assets.

Eight other suspects were also detained in connection with the case.

According to initial findings, Tan and Ut in mid-April 2024 hired developers to create a fictitious technology project named Kayple to lure investors into cryptocurrency schemes.

By early September 2024, the pair falsely promoted Kayple as an ‘advanced blockchain ecosystem’ featuring a decentralized exchange, a play-to-earn gaming platform, artificial intelligence-powered automated trading, and cross-chain compatibility, while promising automatic and high returns.

To bolster credibility, the suspects spread false claims that the project had been developed overseas and had attracted a large number of foreign investors.

They asserted that only seven million Kay tokens had been issued, creating artificial scarcity, and claimed the token price had at times reached VND52,000, or about $2, per Kay.

The group recruited numerous intermediaries, referred to as ‘leaders,’ to promote the project and guide investors, paying these associates in USDT drawn directly from the funds raised.

They also organized online meetings, set up Zalo and Telegram groups, and circulated fabricated images and data showing purportedly high profits to lure additional participants.

Investigators determined that Kayple was entirely fictitious.

All investor funds were funneled into a digital wallet controlled by Tan before being withdrawn and shared among Ut and other accomplices for personal use.

The account balances and profits displayed on investors’ wallets were also entirely virtual.

By August 2025, after appropriating the entire amount, the group shut down the system and announced that the project was undergoing ‘maintenance.’

From September 2024 to August 2025, Kayple attracted more than 4,000 investor wallets and amassed over 51 million USDT, equivalent to more than $51 million, all of which was allegedly misappropriated by the suspects.

Dak Lak police said they are finalizing procedures to prosecute the suspects while expanding the probe into the large-scale scam.

Authorities have urged investors in the Kayple project to contact local police to report their cases and assist with the ongoing inquiry.