Bankland case: sale of 'virtual currency' to defraud investors

Bankland case: Offering 'virtual currency' to defraud and seize assets from investors The Hanoi People’s Procuracy has completed the indictment against defendant Vu Duc Tinh and accomplices in the fraud case involving Bankland Joint Stock Company (Bankland). The number of identified victims harmed by the scheme reaches 5,368, with embezzled funds totaling 497 billion VND. Investigators clarified the method used to lure investors by fabricating fake projects, selling 'virtual' shares, and giving gifts such as cash, gold, land, cars, and trips. According to the indictment, from October 2021 to November 2022, defendant Vu Duc Tinh directed the establishment of three entities: Bankland; CAWIHO Technology Trading and Industrial Investment Joint Stock Company (CAWIHO); and GBF Group Joint Stock Company (GBF). At these companies, Tinh acted as a senior advisor, earning 10% of revenue and profits. Defendant Quan Van Duong served as Chairman of the Board, while Nguyen Thi Nhu held the position of General Director of Bankland. In reality, the company did not engage in business activities to generate profits. The defendants mobilized investor funds with daily interest payments of 3-5.1% per month (up to 43.2% annually), while continuously issuing notices about promotions and incentives to attract funds. Moreover, although the company had been operating for just over a year and had not declared taxes, on June 1, 2022, Duong signed a notice establishing an electronic stock exchange Banklandexxchange and issued stock code BLI with 10,000 billion shares. The defendants self-valued shares at a starting price of 0.0001 USD per share; created ten bond packages ranging from 100 USD to 10 million USD, enabling investors to own BLI shares traded among themselves and to use BLI shares to register purchases of real estate on the company’s exchange. Bankland also ran promotional programs to attract investors to buy share packages, offering gifts such as cash, gold, land, cars, SH motorbikes, iPhones, and trips. During investigations, investors said they learned through friends and social networks that Bankland was a real estate business operating on a blockchain-based platform, involved in interior design, spa, and travel, with long-term goals to list shares on a stock exchange. At investment seminars, staff introduced high-interest investment packages. Seeing attractive profits, investors signed contracts and deposited funds. However, investors were paid only the initial profits for a few months until June 2022. Similarly, at CAWIHO, Tinh conspired with Tạ Văn Cương—Chairman of CAWIHO—to issue internal shares CWE totaling 3,000,000,000,000 shares, starting price 0.0003 USD per share (1 USD = 24,000 VND), which were sold to investors, resulting in more than 16.7 billion VND defrauded. Investors reported that they were told CAWIHO operated in finance, real estate, technology, and other sectors, with investment cooperation programs with fixed or flexible terms, potential for strategic equity, internal electronic shares, and partnerships with banks for foreign exchange and real estate. Participating investors were promised high profits and a guarantee to withdraw 100% of invested funds. The prosecutors concluded that this is cryptocurrency created by Bankland and CAWIHO with no liquidity value. The sale of these shares violated the securities laws and corporate law provisions cited in the indictment (2019 Securities Law, Article 15; 2020 Corporate Law; registration and public offering requirements). Bankland fraud: 5,368 investors trapped, 497 billion VND embezzled.