Red warning about virtual currency investment

Authorities and experts continuously issue red warnings about the risks of investing in virtual currency.

Investors need to learn carefully about technology, concepts related to virtual currency and be careful to avoid being exploited and scammed by bad guys.

Continuous warning

Recently, many articles and comments have appeared on social networking sites, groups, and forums about the virtual currency Pi Network. In particular, the listing of Pi Network on a number of virtual currency exchanges has created excitement in the community of Pi "miners". After 2 weeks since being listed on exchanges, the price of Pi is currently fluctuating around 1.8 USD (about 46,000 VND) and at one point reached 3 USD (about 76,000 VND).

Hanoi City Police have issued a warning about the risks of investing and trading in Pi Network virtual currency. According to Vietnamese law, virtual currency in general and Pi virtual currency in particular are not considered assets. Therefore, incidents, problems, and disputes related to virtual currency and Pi trading activities are very risky and difficult to protect and handle by law.

Some subjects may take advantage of the Pi virtual currency to commit illegal acts, such as creating fake Pi virtual currencies, raising capital for the purpose of fraud and appropriation of assets. Bad subjects even create fake Pi Network applications to illegally collect user data, illegally access for the purpose of fraud, appropriation of assets or virtual currency in Pi virtual currency buying and selling transactions.

Along with that, the police of Nghe An, Nam Dinh, Dong Nai, Bac Lieu provinces have also issued warnings about fraud in cyberspace. The subjects often impersonate authorities, lure investors into investing in virtual currency or impersonate trading floors to appropriate assets.

These warnings were issued after a series of virtual currency scams were busted by police.

Most recently, Hanoi Police busted a transnational cryptocurrency fraud ring. The number of people scammed was over 2,000, with a total amount of over 2,000 billion VND. Previously, Hanoi Police initiated an investigation into the case of Trieu Nu Cuoi Company luring about 100 businesses and nearly 400 individuals to buy QFS quantum coins worth hundreds of billions of VND...

Nghe An Provincial Police have also dismantled a transnational fraud ring operating in the “Golden Triangle” (Bokeo Province, Laos). This criminal group mainly impersonated successful businessmen, luring people to invest in the virtual currency they created. Many victims fell into the trap, one victim had 18.6 billion VND stolen.

According to a survey by the National Cyber Security Association, in 2024, 1 in 220 users will be a victim of online fraud (a rate of 0.45%). The total damage caused by online fraud in 2024 is estimated to reach VND 18,900 billion. Regarding virtual currency fraud, according to Chainalysis (an American blockchain analysis company), initial estimates show that e-wallets involved in fraud earned $9.9 billion in 2024 and are expected to increase to a record $12.4 billion in 2025. The frauds mainly originate from large-scale fraud centers in Southeast Asia and show signs of increasingly decentralized operations.

Beware of “Crypto Cheese”

Mr. Dang Minh Tuan, Chairman of the Vietnam Blockchain Alliance, said that investing in cryptocurrencies has many potential risks because in Vietnam, cryptocurrencies are not yet legal, there is no management agency to control fraud and market manipulation, which means they are not protected by law. Investors need to learn very carefully about technology, must have the skills to use wallets and concepts related to virtual currencies.

“Investors need to be careful to avoid being taken advantage of and scammed by bad guys,” Mr. Dang Minh Tuan warned.

In 2024, Vietnam will rank 5th in the world in terms of interest in digital assets, 3rd globally in terms of using international trading platforms, and 6th in terms of trading volume on decentralized platforms.

There are currently 17 million Vietnamese people owning digital assets, with a total market value exceeding 100 billion USD, and informal digital asset transactions are creating a huge underground economy.

(Source: Chainalysis Statistics)

According to Mr. Tran Huyen Dinh, Founder of AlphaTrue, investors need to equip themselves with solid knowledge and be vigilant before trading crypto assets. Before participating, investors should carefully study the types of crypto assets, how blockchain technology works, security techniques and the characteristics of each type of asset to manage safely and reduce risks. In addition, they should be careful with investment offers that promise high profits, as this could be a sign of fraud; it is necessary to check information from reputable sources and avoid falling into the "fomo" mentality (fear of missing out on opportunities).

“Currently, in a market lacking legal regulations, users are at risk of being scammed or losing their assets. Accordingly, legalizing digital assets not only brings peace of mind to people when participating in transactions, but also strengthens their trust in blockchain technology and related applications,” Mr. Dinh suggested.

Regarding the legal issue, lawyer Bui Anh Tuan (Hanoi Bar Association) said that many countries have not yet expressed a clear stance on digital assets, so it is necessary to be very cautious to shape a legal framework. However, it is necessary to have a legal framework for management, because trading, buying and selling, and investing in digital currencies are taking place every day. The legal framework for virtual currencies and virtual assets that is built will be the basis for managing related transactions, ensuring tax obligations, resolving disputes, and limiting fraud. This also helps prevent the risk of money laundering and terrorist financing through cryptocurrency transactions.

In Directive No. 05/CT-TTg issued on March 1, 2025, the Prime Minister requested the Ministry of Finance to preside over and the State Bank of Vietnam, in accordance with its assigned functions and tasks, to propose and submit to the Government within March 2025 a legal framework for managing and promoting the healthy and effective development of digital assets and digital currencies. The legal framework will be an important legal corridor to avoid negative impacts on the economy and social issues, while helping to contribute value to the country's economy.

Source: https://baodautu.vn/canh-bao-do-ve-dau-tu-tien-ao-d250814.html