On December 10th, the Hanoi Police announced they have launched a criminal case and arrested Pho Duc Nam, also known as TikToker "Mr. Pips", and 29 other individuals on charges related to a large-scale securities fraud operation.

According to the investigation, since 2021, Nam and his accomplice Le Khac Ngo had teamed up with a Turkish national to orchestrate the fraud scheme. The group established numerous shell companies based in Hanoi, Ho Chi Minh City, and other provinces, one of which had around 44 branch offices in Ho Chi Minh City alone. 

The companies claimed to offer foreign exchange and derivatives trading services, but in reality, they were simply defrauding investors. The group created English-language websites to make their operations appear legitimate and international. They also aggressively recruited employees to interact with and deceive customers.

The investigation found the group used various tactics to lure in victims. Initially, they would encourage customers to make small, profitable trades to gain their trust. Then they would pressure the victims to invest larger sums, and if clients started losing money, the group would offer them loans within their system to keep them investing. Once a victim's funds were depleted, the group would block communications and abscond with the money.

As a result of the nationwide investigation, the police have frozen over 5,200 billion VND (approximately $220 million USD) in assets, including cash, gold, luxury vehicles, and real estate. The authorities have identified over 2,660 victims across the country who were defrauded by this transnational criminal operation.

Prior to his arrest, Pho Duc Nam, 30, had gained a significant social media following on TikTok and YouTube under the persona "Mr. Pips", where he claimed to have 10 years of experience in international gold and securities trading. He used these platforms to promote his "foolproof" investment strategies and lure in new victims to the fraud scheme.