Vietnamese Authorities Sound Alarm on Gate.io and Pi, USDT, BUSD Cryptocurrency Scams

In a recent development, the State Securities Commission of Vietnam (SSC) has issued a warning about fraudulent activities involving cryptocurrencies on unlicensed securities trading platforms.

Specifically, the commission has accused certain individuals and organizations of falsely labeling themselves as securities companies without obtaining the necessary licenses. These entities have been operating unauthorized securities trading platforms and applications.

SSC Vietnam

Subsequently, these individuals and organizations have taken to social media to encourage people to open accounts and deposit funds into electronic wallets for investments in various cryptocurrencies such as Pi, USDT, BUSD, and more. After a period of time without being able to withdraw their funds or experiencing significant losses in their investment accounts, unsuspecting investors have realized they fell victim to scams.

The list of identified platforms by the State Securities Commission includes names like Gate.io, GoldFinger Finance, Vietdiamondstocks, bawallet9.com, Londonex.com, ZenoMarkets.com, CHMarkets.com, JASS.com, DEXDN.com, LPL.com, TradeTime.com, and others.

Source: SSC Vietnam

It’s worth noting that some long-standing trading platforms and financial services like Gate.io and LPL.com have enjoyed a certain level of credibility in the market. However, many individuals have taken advantage of this reputation by creating similar-sounding platforms to confuse investors or by disseminating false information about their connection with the State Securities Commission.

Additionally, some fraudulent schemes involve the creation of unauthorized trading platforms or applications like bawallet9 and Vietdiamondstocks. These platforms entice individuals to deposit funds for copy trading or high-profit investment packages using multi-level marketing models.

Faced with the widespread fraudulent activities that have resulted in significant financial losses, the State Securities Commission of Vietnam advises investors to adhere to legal regulations when opening securities trading accounts and only engage in trading government-approved securities. Moreover, investors should exercise extreme caution when receiving investment offers from individuals or organizations with unclear backgrounds, especially those promising high-interest rates and profits, which often lack transparency.

When engaging in trading activities, investors are urged to verify the information provided by trading platforms, including licensing authorities, platform management, trading mechanisms, and the rights and responsibilities of all parties involved. This due diligence helps safeguard their interests and mitigates the risk of financial losses.

Furthermore, the State Securities Commission underscores that cryptocurrencies like Pi, USDT, BUSD, and others are not considered securities, and the buying and selling of these digital assets remain largely unregulated by Vietnamese law.

The State Securities Commission emphasizes that it does not oversee or regulate trading platforms such as Gate.io, GoldFinger Finance, Vietdiamondstocks, and others, nor does it endorse any organizations conducting trading activities on these platforms.

Despite the uncertain regulatory environment and the lack of official recognition of cryptocurrencies by the government, the enthusiasm for cryptocurrency trading among Vietnamese investors remains high. According to the most recent Chainalysis report in September, Vietnam ranks third in terms of cryptocurrency adoption and second in the rate of trading volume growth.

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