Described by authorities as "Vietnam's largest foreign exchange and securities fraud ring," the operation run by Pho Duc Nam – known as Mr Pips – is scheduled for trial at the Hanoi People's Court on 26/10, involving a record 188 defendants.

Another record is the over 5,000 billion VND in assets seized and frozen in the case, estimated by investigators. The initial number of victims stands at about 2,200.

According to the latest indictment from the Supreme People's Procuracy, Nam is linked to 920 fraud cases, with illicit gains totaling 1,568 billion VND.

Nam's tactics were familiar: establishing fake cryptocurrency exchanges mimicking international trading platforms, ostentatiously displaying wealth for promotion, and luring in unsuspecting investors. Initially, he allowed small wins to encourage greater investment.

When clients went all-in, Nam instructed his technical team to crash the system, draining victims' funds. He then appeased them by offering additional loans and moving them to other platforms with "guaranteed wins."

Investors believed they were engaging in transparent international trading, but in reality, the entire system was a scam, single-handedly controlled by Nam, who dictated wins and losses.

**Spending the proceeds**

With vast sums flowing into his accounts, Nam began involving family members in "spending the money" from 2021. He enlisted his parents and girlfriend to establish shell companies for accumulating real estate.

The Procuracy determined Nam used 378 billion VND to acquire 32 properties, valued from several billion to tens of billions of dong, in prime locations. Most of these were in Thao Dien (Ho Chi Minh City), Hoan Kiem, Tay Ho (Hanoi), and central Da Nang.

Nam also gave his girlfriend 141 billion VND to purchase gold for storage, and used 42 billion VND to buy US dollars and Singapore dollars. The total amount Mr Pips was identified as having "laundered" exceeded 560 billion VND.

This sum does not include dozens of luxury cars such as Audi, Ferrari, Rolls Royce, BMW, and Porsche; 60 watches from brands like Richard Mille, Patek Philippe, Audemars Piguet, Jacob & Co, Hublot, Rolex, and Louis Vuitton; nor his girlfriend's diamonds and gemstones.

Gold bars seized as evidence in the case. Photo: Police provided

**Concealing assets**

These substantial assets immediately became "targets for protection" once his fraud operation was dismantled.

On 31/10/2024, immediately upon learning of their son's indictment and arrest, Nam's parents rapidly began disposing of assets.

Defendant Pho Duc Thang (Nam's father) withdrew all 85 billion VND in cash from four savings accounts, distributing it among relatives and colleagues. He gave 45 billion VND to his nephew, 20 billion VND to a colleague, 20 billion VND to his brother-in-law, and entrusted over 2,4 billion VND to a cousin.

Ms. Le Thi Lieu (Nam's mother) went to bank branches, emptying 30 billion VND from four savings accounts. She then purchased 500,000 US dollars and 314 taels of SJC gold. Ms. Lieu stored all of this in one suitcase and two code-locked backpacks.

She left the suitcase containing 500,000 US dollars, 240 SJC gold taels, and 500 million VND in cash at her niece's home. She sent her nephew a backpack containing 5,7 billion VND in cash, 134 SJC gold taels, and 100,000 US dollars.

Ms. Lieu took her 85-year-old mother to the bank to open a savings account for 15 billion VND in the elderly woman's name.

AI-assisted graphic.

However, the family's rapid asset disposal did not escape the notice of authorities. During searches, officials discovered and seized the entire suitcase and two backpacks, and froze the savings account Ms. Lieu had opened in her mother's name.

Many relatives of the family also voluntarily surrendered money to investigators after the incident came to light, recognizing it as illicit funds they were merely "holding."

The 32 properties registered in the names of relatives and Nam's shell companies were also seized, along with his collection of cars, watches, and jewelry. All these are among the substantial evidence and assets currently managed by authorities.

For the actions identified, Pho Duc Nam's parents, girlfriend, and several cousins are facing money laundering charges.

Thanh Lam