Bitcoin Multi-Level-Marketing Scheme in Vietnam Received Deposits about $1 Million

Bitcoin Multi-Level-Marketing Scheme in Vietnam Received Deposits about $1 Million

A Vietnamese investment scheme that used multi-level-marketing or MLM and Bitcoin as currency for making transactions to assured its clients returns of 144% every month has gone bust. As you know, MLM trading is illegal in Vietnam but overall people invested their money in such risky business scheme.

According to Vietnamese author, Thanh Hien, this Ponzi business scheme was created in January 2016. It used a very strange internet domain “fxmt4.us” to find people who wants to invest its funds and tries to register them in such service before requiring the minimum deposit about one Bitcoin.

 Vietnam

There was a greater interest among the citizens of Vietnam at the beginning of such interesting business scheme. Primarily there was about 1% in everyday returns, but after the first month, the rate raised very high with everyday returns about 24%. Overall, after several months the returns increased up to 144%.

However, in the May, this scheme stopped paying out the users’ benefits and the domain and the services went offline very soon. The local police stated after the special investigation that there were more than 1,900 registered accounts with 1,900 Bitcoins deposited, valued at 22 billion Vietnamese Dong, which is about $1.1 million. Therefore, many people lost their Bitcoins working with this MLM scheme.

However, the police could not find the server of this MLM web site. Because of increasing number of MLM trading schemes using Bitcoin cryptocurrency, the Vietnamese regulator make a public statement to protect people against such investments. Moreover, the State Bank of Vietnam mentioned that the Bitcoin and another cryptocurrency is illegal for of payment or money transferring in Vietnam.

btcs

While the cryptocurrency is not forbidden in the country, there is no required regulations, which is means that the money transferring using Bitcoins is not protected by the government. Despite the unsuccessful MLM business scheme, Vietnam’s $14 billion money transferring industry and the position as one of the fastest-growing economies in the world makes the great potential for Bitcoin and cryptocurrencies adaptation in Vietnam.

Leave a Reply

Your email address will not be published. Required fields are marked *