The Investigation Security Agency of Thanh Hoa Provincial Police has revealed that in the special case dismantling the Xintel technology investment scam ring, over 42,000 accounts nationwide deposited approximately 400 billion VND into the system.

Ms. Thu testifies about Xintel's scheme at the investigation agency. Photo: Lam Son

Among the victims, Ms. Thu, 52, residing in Dong Quang ward, is one of 40 victims in Thanh Hoa. She stated that in 8/2024, several individuals approached her after learning she had substantial savings, continuously inviting her to invest in financial projects within the Xintel ecosystem.

Initially, Ms. Thu declined, lacking knowledge of technology and virtual currency. However, Xintel staff repeatedly persuaded her, presenting it as a major technology project with an operating company, headquarters, and a legal representative.

Ms. Thu was then regularly invited to seminars held at large restaurants. These events featured presentations on the potential of the digital economy, painting a picture of the Xin cryptocurrency significantly increasing in value in the near future.

"I found everything quite professional, so I gradually began to trust them", Ms. Thu said.

Suspect Nguyen Bang Thao, leader of the Xintel technology ecosystem. Photo: Lam Son

According to Ms. Thu, the group employed a "bait and switch" tactic, initially showing investors gradually increasing profits on the system. Each day, her account displayed additional newly mined Xin coins, creating the impression that her investment was generating returns.

After a period, she was instructed to deposit USDT to purchase cryptocurrency mining machines named Xnode and various other financial packages. The total amount she deposited into the system reached nearly 7,3 billion VND.

"The account at that time displayed a large number of Xin coins. They said I just needed to wait a little longer to sell and make a profit", the 52-year-old woman recounted.

However, when she tried to withdraw money or log in to liquidate, her account was suddenly frozen, and orders could not be matched. The system continuously reported errors and became inaccessible. "All the invested money is now just numbers on a screen. I cannot withdraw it. All my life's savings are considered lost", she reported to the police.

Ms. Thu's case clearly reflects the tactics used by the group operating the Xintel technology ecosystem to defraud tens of thousands of investors, according to the investigation agency.

Initial investigation results show that Nguyen Bang Thao established the "Xintel technology ecosystem". The group set up companies like Pi Gaming Co. Ltd and LNP Solution Co. to create a facade of legitimate operations. Simultaneously, they exploited the social network establishment license of the Xfactor Intelligent project – originally only for sharing travel information – to promote a financial technology ecosystem. Platforms such as XINSTAR, XINTRAVEL, and SHOP XINTEL were introduced as components of this ecosystem.

On this platform, Nguyen Duy Thinh, the technology lead, created 12 billion Xin tokens on the BNB Smart Chain network. However, this coin was not listed on any cryptocurrency exchange and held no legal value in Vietnam.

Investigators determined that all data regarding Xin coin value and profits on the website were self-adjusted by the operating group. Nguyen Duy Thinh admitted to being able to interfere with the system to increase or decrease account balances or adjust the virtual price of Xin coin as instructed.

The Xintel system also operated on a multi-level marketing model from F0 to F7. Participants were not only encouraged to invest money but also to recruit new members to receive commissions. According to authorities, this mechanism rapidly increased the number of victims.

Thousands of the scam group's technology devices were seized by police. Photo: Lam Son

The Investigation Security Agency of Thanh Hoa Provincial Police has indicted and temporarily detained 18 individuals for "using computer networks, telecommunication networks, and electronic means to appropriate property", under Article 290 of the Penal Code.

Among these are key suspects: Nguyen Bang Thao (36 years old, residing in Dong Nai), Chairman of the Board of Directors and main operator; Nguyen Duy Thinh (30 years old, residing in TP HCM), Technology Director, who directly manipulated the electronic system; and Ha Tuan Dung (residing in TP HCM), Marketing Director, responsible for promotion and attracting investments. All have been temporarily detained.

Le Hoang