Vietnam Police Bust Matrix Chain Scam Defrauding Nearly $400 Million

Highlights:

• Matrix Chain collected nearly $394 million from more than 138,000 accounts.
• Authorities have arrested five suspects after a 200-day police investigation.
• 40% of funds went to recruiters; the rest funded marketing and real estate.

Five individuals involved in the Matrix Chain crypto scam, which swindled tens of thousands, have been arrested by Vietnamese authorities. According to the report, the investigation lasted for almost 200 days, with elite officers working nonstop. Authorities claimed that the fraud gathered nearly $394 million (VND10 trillion) from more than 138,000 accounts across the country.

The Matrix Chain platform was a decentralized blockchain designed to reward users with financial rewards through its MTC token. However, the token was worth nothing and those involved were deceived by promises of big rewards and commissions. The fraudsters applied a pyramid scheme model to three different regions in Vietnam. They urged participants to pay 1 USDT and install Matrix Chain’s software to be part of its platform.

The scheme was mainly built on regional leaders recruiting more users. The group grew by hosting many promotional events and setting up online groups on Telegram and Facebook. The events encouraged individuals to keep depositing to support the front of legitimacy.

Vietnamese police arrest Matrix Chain scam ring behind $394M crypto fraud

Vietnamese police have arrested five suspects tied to Matrix Chain, a pyramid scheme that defrauded more than 185,000 investors of 394.2 million USDT, @DecryptMedia reported. The group allegedly lured…

— CoinNess Global (@CoinnessGL) May 28, 2025

Financial Flows and Scheme Mechanics

About 40% of the raised funds went to regional recruiters as their commission, according to the investigation. Also, 5% of the funds went toward marketing campaigns and promotional events. The rest, which was 55%, was withdrawn for personal spending, including on luxury real estate.

Nguyen Quoc Hung told investigators he hired anonymous developers over Telegram to create the Matrix Chain platform in early 2023. He spent almost $20,000 to have the software created. He owned a separate SafePal wallet with 100 million MTC, and he managed to manipulate the token’s price. As a result of this trick, he was able to get more USDT deposits from users who didn’t suspect anything.

Together, Bui Thi Thanh Nga and her sister, Bui Thi Thanh Hoa, handled several wallets where users sent their deposits. Nga handled the “platform fee wallet,” in which participants made a 1 USDT payment to register. The suspects also led training sessions to strengthen recruiters and encouraged them to set ambitious recruitment goals. Because of this structure, the user base expanded at a fast rate.

Funds from the scam were converted and transferred using the SafePal e-wallet and B2B Smart Trade system. Officers discovered that the gang used their stolen USDT on black markets, which made the funds harder to track. Furthermore, various assets were seized in connection with these transactions for use as evidence.

Investigation Progress and Wider Impact

Dong Nai Provincial Police initiated the investigation and conducted raids in the suspects’ houses and offices to seize evidence. The five people held were born in the period from 1980 to 1991. Dozens of other alleged accomplices are still being investigated by authorities.

The Matrix Chain case exposed how cryptocurrency scams can take advantage of decentralized systems and social sites to recruit people. It also pointed out the challenges that unregulated digital assets bring to Vietnam’s growing crypto market. Last year, Vietnam took fifth place on the Global Crypto Adoption Index but fell two spots compared to 2023 because of rising scams similar to this one.

In March, the Ministry of Finance and the State Bank were instructed by Prime Minister Phạm Minh Chính to work out a legal framework for digital assets. The objective was to improve the safety and transparency of transactions with cryptocurrency. In addition, the Matrix Chain bust makes it clear that tighter rules are needed in the industry.