On 21/8, Hanoi police announced that the investigative police agency has initiated criminal proceedings and detained Dang Quoc Thang, 39; Nguyen Thanh Loc, 28; and Ngo Khac Trung, 34, for investigation into the crime of using computer networks, telecommunications networks, and electronic means to commit property appropriation.

The Hanoi Police Department of Cybersecurity and High-Tech Crime Prevention determined that Thang established Maxx Group to promote and introduce cryptocurrency projects. From 2022 to the present, the group has raised 7.86 million USD, equivalent to 200 billion VND, from over 3,000 investors, primarily through two key projects: Wingstep and Game Naga Kingdom.

Thang received 5% to 50% of the funds raised for each project. Trung was appointed by Thang as director and legal representative of Maxx Group, responsible for promotion and attracting investment.

Dang Quoc Thang at a product promotion event. Photo: Provided by the police.

For the Wingstep project, investors downloaded the Wingstep app from the website and deposited BUSD cryptocurrency into their accounts (1 BUSD = 1 USD). Investors then purchased NFT sneakers priced from 100 USD to 1,200 USD per pair. Daily, players opened the Wingstep app and walked or ran to earn rewards in WST cryptocurrency, which could be converted to BUSD.

Thang presented this as a South Korean project offering high and long-term profits. Participating customers were promised 5% of the investment amount for first-level investors (F1) and 3% for second-level investors (F2). However, this was merely a ploy to attract investment.

Police determined that approximately 500 customers invested a total of 300,000 USD, equivalent to 7.2 billion VND, in the Wingstep project.

Wingstep operated from 5/2022 to 8/2022 before becoming illiquid. All investor funds were misappropriated.

The three suspects in the case. Photo: Provided by the police.

In the Game Naga Kingdom project, investors purchased NFT game characters such as Monkey, Chicken, Dog, and Pig, also known as "Spirit Beasts," ranging from tens of millions to hundreds of millions of VND. After buying NFTs, investors played the game to earn "Maga" cryptocurrency, which could then be converted to BUSD.

Thang presented this as a blockchain-based game with NFT issuance, promising investors profits of 5-8% and referral commissions of 10% of the total investment.

Police identified approximately 20 customers who invested 60,000 USD, about 1.5 billion VND, in this project. However, after only three months of operation, Game Naga Kingdom was shut down, leaving players with losses and their investments wiped out.

During the investigation, the group admitted that the projects were not licensed in Vietnam. Driven by profit, they presented false information about the projects to deceive customers. Each project was intentionally operated for only a short period.

Hanoi police urge anyone affected by these projects to contact the Criminal Police Department for assistance.