The Vietnam Blockchain Association (VBA) has warned the public about suspicious projects such as CrossFi, MinePlex, and BOM Network. These projects allegedly hold private seminars and misuse the images of influential figures to solicit investments.

Phan Duc Trung, Vice President of VBA, raised this warning at the seminar Enhancing capabilities to combat financial crime in cyberspace held on December 18.

Exploitation and rising concerns

According to Phan Duc Trung, data from Chainalysis indicates that nearly $100 billion worth of illegal cryptocurrency transactions were laundered through conversion services between 2019 and 2024.

In 2022 alone, money laundering activities reached a record $31.5 billion, emphasizing the urgent need for regulatory oversight.

In Vietnam, projects like CrossFi, MinePlex, and BOM Network continue to exploit the reputations of prominent individuals during private events to attract investments. For example, CrossFi falsely claimed membership in the VBA by using photos taken with Phan Duc Trung.

Reports from ChainTracer reveal cases where users were scammed after transferring funds to unverified platforms or wallets.

Meanwhile, unlicensed exchanges such as BingX and Gate have launched aggressive advertising campaigns targeting vulnerable groups like students and young people.

Unlicensed exchanges targeting students

Some platforms have gone further by hosting events at universities to lure students into cryptocurrency investments. One such platform, Biget, even created a dedicated exchange for Vietnamese users.

Despite promoting web3 and blockchain technology, these exchanges primarily focus on enrolling users and encouraging cryptocurrency investments.

Previous warnings from VBA about unlicensed exchanges have not curbed these activities. Even after intervention by authorities, these events continue.

Regulatory challenges

Developed countries have implemented measures to combat unauthorized cryptocurrency exchanges, focusing on compliance with anti-money laundering protocols.

In Vietnam, Phan Duc Trung suggested that regulators need to shift from reactive measures to preventative actions. Early intervention could mitigate money laundering before significant harm occurs.

The Ho Chi Minh City Police Department (PC01) has investigated numerous cryptocurrency-related cases, including fraud, gambling, and money laundering. However, difficulties in identifying fund sources and tracing transactions remain significant barriers.

Representatives from PC01 emphasized the need for interagency collaboration to gather evidence and prosecute offenders effectively.

Blockchain transparency

Tran Huyen Dinh, director of VBA’s ChainTracer program, clarified that blockchain transactions are not fully anonymous but rather pseudo-anonymous. This feature simplifies tracking illicit funds.

Authorities can trace funds as they transition from cryptocurrency wallets to traditional financial systems, bypassing the need to identify wallet addresses or individual transactions.

For instance, several cases involved criminals converting cryptocurrency into fiat money at retail stores, leading to immediate apprehension.

Le My