The Vietnamese authorities have launched an investigation into the company Modern Tech, which is suspected of fraud and misappropriation of 32 thousand ICO-investors in the amount of 15 trillion dong ($ 660 million). This is reported by Nikkei Asian Review.
The reaction of the authorities was followed after the ICO participants held a mass action in Ho Chi Minh City in front of the headquarters of Modern Tech, demanding compensation for their funds.
Victims of Modern Tech at Ho Chi Minh Street Action
Modern Tech positioned itself as an authorized Vietnamese representative of the projects Ifan and Pincoin, responsible for conducting two ICO on their behalf. The first project is registered in Singapore, and Pincoin is in Dubai. However, as indicated by the local media, they are followed by seven Vietnamese citizens.
Modern Tech promised investors of these projects an extremely high return on investment - more than 570% per annum, comparing it with "miserable" 16% of income from bank deposits and 17% of investments in real estate. In addition, for attracting new participants, "investors" were offered an additional remuneration of 8%.
Ifan was positioned as the "most advanced social network" for celebrities and artists, which allowed users to communicate with their idols, as well as buy albums, tickets and various goods for tokens.
Pincoin was presented as an "investment opportunity", promising 40% of the monthly profit.
The investor's anxiety increased significantly after the company started paying commissions in tokens, rather than in fiat money. At the same time, there was no way to cash out these tokens or exchange them for another crypto currency.