The Criminal Police Department of Hai Phong City Police recently arrested Do Trung Anh, Le Duc Tien, Nguyen Thi Hai Hien, and Pham Tien Minh Duc. They face charges of property fraud under Clause 4, Article 174 of the Penal Code.

Authorities accuse the group of creating a fraudulent virtual currency project named "Gemholic". They launched the website Gemholic.world and developed a virtual currency called GEMS on a blockchain platform.

The suspects then promoted the scheme through social media platforms like X (formerly Twitter), Telegram, and various large cryptocurrency communities to solicit investments. Between 3/4/2023 and 5/4/2023, the group publicly offered GEMS coins for sale, raising over 39,1 billion dong from unsuspecting investors.

The virtual currency website set up for fraud. *Screenshot*

Once investors transferred their funds, the group deliberately crashed the website, deleted the domain name, and erased the server system. This action prevented investors from accessing their accounts or withdrawing money, allowing the suspects to embezzle the funds.

The illicit gains were subsequently fragmented and distributed across dozens of electronic wallets, then transferred through multiple intermediate exchanges. This complex process aimed to obscure the money's origins, legitimize the funds, and facilitate their use for personal expenses.

Hai Phong City Police have characterized this as a sophisticated high-tech fraud operation. It exemplifies the serious nature of crimes that exploit blockchain technology, virtual currencies, and cyberspace.

The Investigation Police Agency of Hai Phong City Police urges any individuals or organizations who are victims of the Gemholic project—those who invested in the GEMS virtual currency or transferred funds via ETH and have not been reimbursed—to contact the Criminal Police Department of Hai Phong City Police. This will allow them to receive guidance and ensure the protection of their legal rights and interests.

Le Tan