On 26/11, the Cyber Security and High-Tech Crime Prevention Department of Da Nang City Police announced the arrest of suspects, seizure of documents and evidence, and the freezing of assets to mitigate damages.

Suspects in the fraud ring arrested by police. *Photo: Police*

Initial investigations revealed that since late 2020, Nguyen The Duy (44) and Nguyen Pham Phu Thoa (41), both residents of Da Nang, conceived a plan to create a "ghost" TOSI cryptocurrency project. They hired programmers to develop the TOSI coin on the Binance Smart Chain platform and built websites such as tsijp.jp, tsibank.ai, and tsigh.ai to attract investors.

Duy and Thoa hired Duong Quang Hai (41), a Da Nang resident, to operate the technical system. The group programmed a function that linked personal digital wallets to the system, funneling all deposited user funds directly into their wallets, bypassing exchanges or shared wallets.

To conceal the fraud, the group falsely claimed the TOSI coin was issued by a Japanese corporation and would soon list on the Binance exchange. They offered unusually high-interest investment packages (3-22%) and paid rewards through a multi-level marketing model. When participation declined, they shut down their websites, citing "maintenance" or "hacker attacks," then launched new projects to continue their illicit gains.

To expand their scheme, Duy and Thoa partnered with Duong Thanh Ky (41) to establish the YouTube channel "TOSI VIETNAM". They produced misleading promotional videos, conducted livestreams, and organized seminars and investor meetings across various provinces. They recruited "leaders" in many localities to attract participants, creating a widespread multi-level network.

Police determined that from 2021 to date, the group launched three consecutive fraud projects, misappropriating approximately 90 billion VND from over 8,000 individuals nationwide.

During searches of workplaces and residences, police seized 11 laptops, 16 phones, over 20GB of source code data, and approximately 1,000 pages of documents. They also froze over 1.1 billion VND in bank accounts, nearly 100,000 USDT in virtual currency wallets, and various related real estate properties.

Da Nang City Police urged victims to report their cases promptly for guidance and advised the public to avoid unverified online investment projects to prevent fraud.

Ngoc Truong