Vietnamese police shuts down ONUS for $3 billion fraud

Vietnamese police shut down ONUS on March 20. This crypto platform had siphoned billions since 2018. Millions of Vietnamese lost their savings in what appears to be the country’s largest crypto scam.

ONUS promised high returns on crypto investments. But it was a giant pyramid scheme. Funds were sent abroad through complex transactions. Users, often novices, lost everything. The platform used sophisticated techniques to evade controls. Authorities worked with cybersecurity experts to trace the money and identify those responsible.

Recovering the funds is not simple.

The Vietnamese Ministry of Finance estimates the losses at $3 billion. Authorities have issued wanted notices for several ONUS executives. Their identities remain confidential for now. Nguyên Van Duc, a cybersecurity expert, stated, “They used complex transaction chains to cover their tracks.” He said this at a press conference on March 25.

Victims’ Reactions

The victims are angry. Lê Văn Hùng invested over $100,000 in ONUS: “I didn’t know it was a scam. I lost everything.” He said this on local TV on March 26. Hundreds of victims gathered on March 22 in front of the former ONUS office in Hanoi. They demand justice. The lack of clear answers from the authorities fuels their anger.

Groups are forming to sue the operators. Vietnam’s crypto community is worried about the repercussions on trust in the sector. Local financial experts, like Lê Thị Hồng, fear a bank run. This loss of confidence could affect the broader financial sector. Investors might massively withdraw their funds from all digital investments.

The government is considering measures to strengthen the security of digital transactions. Prime Minister Phạm Minh Chính said on March 23 that drastic measures would be taken. He wants to prevent such frauds from happening again. He emphasized the importance of raising public awareness about crypto risks. This development aligns with OKX shelving its U.S. IPO plans, highlighting broader trends.

International Investigation

On March 24, Vietnamese police issued arrest warrants for three key ONUS executives. Trần Minh Quang, former CFO, is suspected of orchestrating the illicit transfer of funds to offshore accounts. Authorities are seeking to collaborate with international banks to freeze these assets. It’s not easy to track them down.

The Vietnamese government has requested Interpol’s assistance to track funds moved abroad. Meanwhile, the Central Bank of Vietnam has issued a warning to citizens against unregulated investments. A report from the Ministry of Public Security on March 26 shows that over 30,000 transactions have been analyzed. The process revealed the involvement of several foreign accomplices.

Authorities are working with international security agencies to identify these individuals. Internal documents, obtained by authorities and dated February 2023, show that ONUS executives had planned to move their headquarters to Singapore. They wanted to escape Vietnamese jurisdiction. The swift intervention of investigators thwarted this escape attempt.

On March 27, a report from the Vietnam Securities Commission revealed that ONUS operated without an official license. This allowed the scam to grow without adequate oversight. This revelation raises questions about the effectiveness of current regulatory controls.

The Vietnamese Ministry of Justice announced on March 28 the establishment of a special unit. It will handle the recovery of misappropriated funds. The unit will collaborate with international financial experts to track the complex fund transfers made by ONUS. It remains to be seen if they will recover anything. This ties into themes discussed in Five Cryptos Surge Despite the Downturn, illustrating the evolving landscape.