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ERG's website offer investors 13 investment packages, ranging from US$100 to $1 million.

 

 

ERG offers some 13 investment packages, which range from US$100 to $1 million with an unusually high-interest rate at up to 180 per cent per year.

ERG claims it’s a fintech firm specialised in online trading, cryptocurrency mining, e-commerce, pay to click and gaming. Though ERG says it’s based in the British Virgin Islands, the ministry said ERG has not been registered with UK authorities.

ERG offers some 13 investment packages, which range from US$100 to $1 million with an unusually high-interest rate at up to 180 per cent per year.

Investors are instructed to transfer money to ERG members’ accounts to purchase the desired amount of cryptocurrency. They also receive a bonus from recommending new people to invest in ERG.

A ministry source said ERG’s payments will likely collapse when revenue from new investors is unable to cover payments to early investors.

As of now, the Government does not recognise any forms of e-money or cryptocurrencies. In addition, the ministry has not been able to locate ERG’s office within the country’s territory. Investors, therefore, face a high risk of losing their entire investments once ERG collapses, like many similar Ponzi scheme operations before.

Second warning

The ministry also issued a warning against e-wallet company PayAsian.

According to the ministry, the HCM City-based company also showed numerous signs of Ponzi scheme fraud.

PayAsian’s legal representative Nguyen Manh Hung claimed the company’s e-wallet can accept and process transactions anywhere in the world in any currencies. The company has issued its own e-money Paya at 5 US cents per Paya. Investors were told the value of Paya will increase in the near future and they also get a cut from recommending others buy in.

“Paya has not been licensed by Vietnamese authorities and therefore, could not be used to conduct financial transactions. The only way out for investors is to sell their Paya to other Paya investors. Paya’s operation has shown many signs of fraud,” said the ministry in a statement.

The ministry urged people to stay away from investing in ERG and Paya and contact local police if they invested in the said companies. — VNS