$200-million forex scam by TikToker uncovered

Phó Đức Nam, better known as "Mr Pips", at police station. — Photo courtesy of Hà Nội Police

HÀ NỘI — Hà Nội Police, in collaboration with various departments of the Ministry of Public Security, have dismantled a criminal network engaged in fraudulent activities through illegal forex and stock trading platforms.

The group was led by Phó Đức Nam, better known as "Mr Pips" on social media, especially TikTok.

Since 2021, Phó Đức Nam, 30, from Vũng Tàu City, Bà Rịa-Vũng Tàu Province, and his associate Lê Khắc Ngọ, from Hà Nội's Bắc Từ Liêm District, conspired with a Turkish national operating out of Morgan Tower in Phnom Penh, Cambodia.

They orchestrated their scam by instructing seven accomplices in Việt Nam to establish multiple shell companies in Hà Nội, HCM City, and other provinces.

One such entity, ARTEX VINA Co., Ltd., headquartered in District 1, HCM City, operated 44 representative offices nationwide, including 24 in Hà Nội.

Although these companies lacked licences to conduct securities or financial operations, they recruited approximately one thousand employees to run illegal forex and derivative trading activities.

To lure victims, the suspects developed and managed five English-language websites, including Alpha.com, Gtmx.com, Btfx.com, Enzofx.com, and Gkfx.com, which they falsely presented as reputable international trading platforms.

These sites were linked to bank accounts controlled by the group and connected to MetaTrader 4 and MetaTrader 5, popular trading platforms for forex and securities worldwide.

Nam and Ngọc assigned responsibilities to their associates Đào Diệu Thúy, 27, from Quảng Ninh Province's Cẩm Phả City and Trần Thị Cẩm Tú, 28, from Cẩm Xuyên District,  Hà Tĩnh Province.

These associates were tasked with recruiting employees and organising the workforce into departments such as accounting, human resources, IT, business operations, and customer service.

Using platforms like Zoiper, Zalo, and Telegram, these departments coordinated to mislead victims and gain their trust.

Victims were initially guided to make small transactions, which appeared profitable and allowed withdrawals, fostering a sense of trust.

The suspects then employed various manipulative tactics to coerce victims into gradually increasing their investment.

When victims suffered losses or exhausted their accounts, the group continued to deceive them into transferring more funds under the pretext of recovering their losses.

This cycle persisted until victims were financially drained, at which point the suspects severed contact and appropriated the stolen funds.

On October 25, Hà Nội Police, in collaboration with the Criminal Police Department, Cybersecurity and High-Tech Crime Prevention Department, and other units, dismantled this transnational criminal network.

Authorities have identified 2,661 victims nationwide and seized or frozen assets worth over VNĐ5,200 billion (US$211.8 million).

The Hà Nội Police Investigation Agency initiated criminal proceedings for "Fraudulent appropriation of property," "Money laundering," "Failure to report a crime," and "Harbouring and consuming criminal assets."

A total of 31 individuals have been prosecuted, including 26 for fraud, three for money laundering, one for failing to report a crime, and one for harbouring criminal assets.

An international arrest warrant has been issued for fleeing Lê Khắc Ngọ.

The police urged Ngọ to surrender and seek leniency under the law.

The case is under further investigation. — VNS