A fraudulent blockchain scheme has been uncovered in Vietnam, where Lê Trung Hiếu, aged 42, allegedly scammed thousands of investors out of more than 100 billion VND. The authorities in Thái Nguyên province have charged Hiếu with using computer networks and electronic means to commit property theft.

Hiếu is accused of establishing four companies as fronts to create a fake investment platform called CANVANEX, which lured investors into a multi-level marketing scheme. The companies include IDEA & STARTUP Technology Group, PGC Investment Technology, Green Tech Group, and Blockchain Education Technology, all based in Hanoi, with Hiếu serving as the chairman and CEO.

According to police reports, Hiếu fabricated the CANVANEX project due to a lack of funds for his ecosystem. He introduced a digital currency called CVX and utilized the ID.CANVANEX software to attract investments by selling digital share packages. Once he secured funds, Hiếu reportedly used the money to purchase equipment, facilities, and real estate.

Hiếu structured the operation with himself at the top, followed by senior leaders he personally selected for regional management. More than 30 PGC companies were established in various localities, all linked to a parent company to expand the market. The lowest tier was referred to as 'leaders,' who further developed sub-branches and earned commissions based on the number of investors they recruited.

The police found that Hiếu's companies offered numerous investment packages in the form of digital currencies CVX and its variants, promising lifetime investment value and profits that could multiply exponentially once listed on international cryptocurrency exchanges. To mislead investors, a website mimicking an international cryptocurrency exchange was launched, claiming to operate on blockchain technology. However, the transactions were merely internal and fabricated to resemble a legitimate cryptocurrency platform.

Hiếu's group organized grand promotional events and seminars to attract investors, while local PGC companies operated under a multi-level marketing model, offering commissions for recruitment. One senior leader disclosed that team leaders received a fixed commission of 10% for introducing new investors, with additional commissions cascading down through the recruitment chain.

Despite the promises, the company had no actual products or profits to show, and by the time law enforcement intervened, over 3,000 victims had invested in Hiếu's ecosystem, totaling more than 100 billion VND.