On June 22, Lao Cai Provincial Police announced that the provincial Security Investigation Agency had launched criminal proceedings, filed charges and detained three suspects for investigation on allegations of money laundering.

The suspects were identified as Vuong Van Minh, 51, from Bat Xat Commune; Ly Trung Nguyen, 21, from Trinh Tuong Commune; and Ban Thi Luu, 21, from Gia Hoi Commune, all in Lao Cai Province.

Scheme linked to online lottery scams

According to investigators, Ban Thi Luu met a man known only by the nickname “Seven Fingers” while staying in China in early April 2026.

The man allegedly hired Luu to recruit Vietnamese citizens willing to lease their bank accounts for the purpose of legitimising money obtained through online fraud operations.

Investigators said the scam network frequently used Facebook livestreams to promote lottery-style games and scratch-card prize schemes, advertising jackpots worth billions of Vietnamese dong.

After convincing victims to purchase scratch cards and informing them they had won prizes, the scammers demanded advance payments or deposits to process the rewards.

The suspects would then continue inventing additional fees and requirements, pressuring victims into making repeated transfers.

Once victims could no longer pay, the fraudsters allegedly kept all transferred funds and cut off communication.

Funds converted into cryptocurrency

Authorities said the illicit proceeds were routed through multiple bank accounts in Vietnam before being converted into the cryptocurrency USDT in an effort to conceal their criminal origins.

Under the arrangement, individuals who leased their bank accounts were reportedly paid USD120 per day, while intermediaries received an additional USD20 per day for each successful recruitment.

In mid-April 2026, Luu allegedly recruited Ly Trung Nguyen into the operation.

Investigators said Nguyen understood that the activity involved laundering money for Chinese nationals but agreed to participate because of the financial incentives.

On April 21, Nguyen reportedly recruited Vuong Van Minh, offering him VND2 million (about USD77) per day.

The investigation found that between April 28 and May 31, Nguyen and Minh helped process and legitimise nearly VND47.8 billion in illicit funds.

Police said the money was subsequently used to purchase USDT and transferred to digital wallets designated by the operation’s organisers.

More than USD4,800 in illegal profits

Investigators determined that during a period of just over one month, the suspects facilitated the laundering of nearly VND47.8 billion while collectively earning more than VND125 million (approximately USD4,800) in illegal profits.

The case remains under investigation.

Duc Hoang