Vietnam Sentences Four Siblings and Dozens in $3.8 Billion Gambling Case

A Vietnamese court has imposed sentences on four siblings and dozens of accomplices involved in a significant online gambling and cryptocurrency operation that handled transactions totaling approximately US$3.8 billion. The verdict was announced on September 25, 2023, following a two-day trial in Ho Chi Minh City, where the court found the defendants guilty of organizing and participating in illegal gambling activities between early 2020 and late 2021.

The four siblings received prison sentences ranging from eight to 13 years. In total, thirty-nine other individuals were sentenced, with penalties varying from suspended sentences of three years to over ten years in jail. The court’s reporting highlighted an ongoing investigation into an Indian man believed to be the mastermind behind the operation, although his arrest has not yet been secured.

Authorities revealed that the criminal network utilized millions of dollars in illicit profits to acquire real estate and luxury vehicles within Vietnam, as well as to launder money overseas. This has prompted a separate investigation focusing on money laundering activities associated with the gambling ring.

Operation Details and User Engagement

The operation designed websites that allowed for multilayer investments using cryptocurrency, which is prohibited in Vietnam. Users could open accounts, convert Vietnamese dong into digital tokens like USDT and Ethereum, and subsequently transfer these into e-wallets to engage in online gambling. At its peak, the gambling network attracted 20,000 users and maintained around 25 million accounts.

Some participants earned commissions by recruiting new users through platforms such as Telegram and other social media. In response to the rising concerns about illegal activities, Vietnamese internet service providers have blocked Telegram since June, following warnings from authorities regarding “signs of law violation” on the platform. Reports indicate that up to 68 percent of the 9,600 channels used by Vietnamese on Telegram contained “poisonous and bad information,” according to government assessments.

Broader Context of Cryptocurrency Fraud

This case is part of a broader crackdown on cryptocurrency-related fraud in Vietnam. Earlier reports indicated that nearly 60 individuals connected to a separate crypto fraud ring, which allegedly stole millions from Vietnamese nationals, were arrested in both Cambodia and Vietnam. This ring reportedly lured victims into investing in Bitcoin through a mobile application before misappropriating their funds.

As authorities continue to clamp down on illegal online gambling and cryptocurrency operations, the outcomes of these cases serve as significant reminders of the risks associated with unregulated digital currencies and online betting platforms. The Vietnamese government’s intensified scrutiny reflects a growing concern over the implications of such activities on national security and financial integrity.