Illustration of cryptocurrency tokens such as Bitcoin, which was used as virtual currency in the alleged $3.8 billion gambling network in Việt Nam. — AFP/VNA Photo

HCM CITY — Vietnamese prosecutors have indicted 43 people for a US$3.8 billion transnational crypto gambling ring using USDT, Ethereum and Naga tokens, in a case that highlights the country’s legal grey zone around digital assets and the growing risks facing investors.

The HCM City People’s Procuracy on Friday charged Huỳnh Long Nhu, 32, and three of his siblings with organising and running the gambling network, alongside dozens of accomplices. 

Authorities have identified an Indian national as the alleged mastermind of this ring, but he remains at large.

Investigators said the ring, which was dismantled in late 2021 after four years of probes and 15 rounds of supplementary investigation, processed bets worth nearly VNĐ88 trillion (US$3.8 billion) through platforms Swiftonline.live and Nagaclubs.com. 

At its peak, the network attracted some 25 million user accounts and operated a multi-level marketing scheme promising investors daily returns of up to 1.5 per cent.

Profits were laundered through real estate and luxury assets, according to the indictment. Nhu alone pocketed about VNĐ53 billion ($2.1 million), while his brother earned more than VNĐ44 billion.

Loophole

The defendants allegedly exploited a regulatory loophole: Việt Nam has not recognised cryptocurrencies as legal tender or as lawful means of payment, but crypto trading and peer-to-peer transfers remain widespread. 

Players reportedly converted Vietnamese đồng into digital tokens via exchanges such as Binance and Remitano, then used them to gamble online before cashing out.

The case has reignited concerns over Việt Nam’s fast-growing but unregulated crypto market. 

Despite repeated warnings from the State Bank of Việt Nam, the absence of a comprehensive legal framework has allowed digital assets to be used in cross-border fraud, money laundering, and illegal online betting.

Analysts say the scandal reflects broader financial risks in Việt Nam, where investors—often retail users seeking high returns—are vulnerable to scams in the absence of investor protection mechanisms. 

Authorities have pledged to tighten oversight, but a long-delayed legal framework for digital assets remains under discussion.

Insiders said criminals are exploiting Việt Nam’s legal vacuum to build multi-billion-dollar schemes, urging policymakers to close regulatory gaps before more investors are caught in similar traps. — VNS