On 25/6, the People's Court of Ho Chi Minh City (TP HCM) tried Han Huu Hai (also known as Mr. Henry, CEO of a Vietnamese startup) and Tran Le Pham Trung (also known as Evans Trung Tran, ICO Advisor, and General Director of Y-Group) for using computer networks, telecommunications networks, and electronic means to commit property appropriation.

Among the victims summoned by the court, Tran Thi Hong Nhung (also known as Hoang Y Nhung) and several others were absent. Pham Thi Lich (also known as Pham Lich), a beauty pageant runner-up, and another celebrity did not cooperate with the police from the investigation phase.

During the procedural part of the trial, one of the defense lawyers stated they had not received the indictment.

After deliberation, the judges decided to adjourn the trial to 10/7.

Singer Hoang Y Nhung. Photo: Nguyen Thanh Luan

Singer Hoang Y Nhung. Photo: Nguyen Thanh Luan

The indictment states that around 2018, Hai met Trung while investing in a cryptocurrency exchange. In 4/2021, they planned to create an online gaming portal.

Hai, through a person named Vinh (in the UK, identity unknown), purchased two international links, Winrich.club and Wintop1.com, for 80,000 USD to create access links to the online Baccarat game portal. He then used two personal wallets on the Binance and Trust exchanges to receive USDT cryptocurrency from the victims.

Hai was responsible for operating the game portal on the two links, while Trung promoted it and solicited participants through Facebook, Telegram, and Zoom. Leaders (early participants) and agents (identities unknown) also recruited others.

The agreement stipulated that Vinh and Hai would each receive 30% of the misappropriated funds; Trung would receive 15%; and the Leaders and agents would receive 25%.

Tran Le Pham Trung and Han Huu Hai at the time of their arrest. Photo: Nhat Vy

Tran Le Pham Trung and Han Huu Hai at the time of their arrest. Photo: Nhat Vy

Driven by greed, celebrities involved others in the scam. One victim, Tran Thi Hong Nhung, told investigators she invested in the Winrich cryptocurrency exchange in 8/2021 through Nguyen Thi Hien (also known as Alice, identity unknown). Hien sent Nhung the website link via Telegram to create a cryptocurrency trading account and purchase USDT, which she transferred to the Winrich exchange's wallet to exchange for Gold.

Trung used the Facebook account "Evans Justin Jason" to send Nhung a link to a Zoom meeting promoting the Winrich exchange.

Nhung invested multiple times as a Leader, totaling nearly 13 billion VND. In early 10/2021, Hai and Trung shut down the exchange and misappropriated all the remaining funds in Nhung's wallet.

Nhung also introduced her brother to the Wintop and Winrich exchanges. He invested one billion VND, opening three accounts and recruiting about 10 other people. Before they could withdraw any money, the exchanges collapsed.

Similarly, in early 8/2021, Tran Ngoc Linh Chi was introduced to the cryptocurrency exchange by Nguyen Thi Hien, who promised a weekly return of 8% after deducting a 4% insurance fee. Chi bought 30,000 USD worth of USDT on the Binance exchange and transferred it to Hien's wallet to exchange for Gold (1 USD = 1 USDT = 1,000 Gold). She participated in the insurance scheme daily from Monday to Saturday at 8 PM. In early 10/2021, the exchange collapsed, becoming inaccessible, and Chi lost her entire 30,000 USD investment.

Despite multiple summonses, Chi did not cooperate with the TP HCM police investigation.

Prosecutors also established that around the same time, Pham Thi Lich was introduced to the Winrich exchange by Linh Chi. Lich deposited 10,000 USD and bought another 19,000 USDT from another investor, for a total investment of 29,000 USD. Before receiving any returns, the exchange collapsed on 4/11/2021, and she lost everything. She also did not cooperate with the investigation.

Many other investors were similarly defrauded.

Han Huu Hai and Tran Le Pham Trung in court this morning. Photo: Hai Duyen

Han Huu Hai and Tran Le Pham Trung in court this morning. Photo: Hai Duyen

Authorities concluded that from 6/2021 to 10/2021, approximately 450 people joined the Wintop exchange, depositing about 2.5 million USDT, and 400 people joined Winrich, depositing about 2.2 million USDT. As many participants won and requested withdrawals, Hai used later participants' USDT to partially pay earlier participants, prolonging the scheme and making withdrawals difficult. Hai also transferred victims' USDT to his own wallets, selling it on Binance and Trust exchanges, then converting it to Vietnamese dong for personal expenses and debt repayment.

Eventually, unable to make further payments, Hai and Trung shut down the exchanges, misappropriating the remaining funds.

In 12/2021, TP HCM police received complaints from 13 people alleging fraud by Hai and Trung through the two cryptocurrency exchanges. Bank statements, other documents, and testimonies confirmed that 10 people were defrauded of 14.6 billion VND. The remaining three were unavailable for testimony.

Hai Duyen