Vietnam Investigates Alleged USDT Money-Laundering Network Linked to VND 30 Trillion in Transactions

Vietnamese authorities are investigating an alleged online gambling and money-laundering network linked to approximately VND 30 trillion (around US$1.2 billion) in transactions through a reward-based gaming operation known as PinJoy. The investigation has exposed an extensive network of bank accounts, cryptocurrency intermediaries and digital wallets allegedly used to move funds through Vietnam and transfer value to individuals operating overseas.

The investigation was led by police in Hai Phong after information from members of the public raised suspicions that PinJoy was being used to facilitate online gambling. Investigators initially examined the gaming operation before identifying what they described as a broader financial network designed to transfer funds through multiple bank accounts and convert the proceeds into cryptocurrency.

According to reports published in October 2026, the network processed transactions worth approximately VND 30 trillion between June 2025 and its detection. This figure represents reported transaction volume rather than confirmed criminal profit or the amount ultimately recovered by authorities. The investigation remains ongoing, and the allegations have not been established through final criminal judgments.

Investigators reportedly identified thousands of bank accounts receiving payments from people participating in the gaming operation. Funds were then transferred through successive layers of intermediary accounts, with some accounts allegedly active for only a few hours. Others received substantial sums before transferring the money onwards almost immediately. This rapid movement made it more difficult to establish links between the original senders and the ultimate recipients.

Police identified a group of rented apartments in a residential development near the boundary between Hanoi and Hung Yen as an alleged operational centre. During coordinated searches on 20 May 2026, officers seized more than 200 smartphones and substantial electronic records associated with the suspected operation.

According to the investigation, staff worked in three shifts around the clock, with each person operating several Android phones connected to prepared bank accounts. The devices were allegedly used to receive and redistribute funds, with transfers initiated when account balances reached approximately VND 100 million to VND 200 million. The reported arrangement enabled large volumes of payments to be processed without relying on a single account or conspicuous cash withdrawals.

A key stage in the alleged scheme involved converting the accumulated Vietnamese dong into USDT, a stablecoin designed to track the value of the US dollar. Investigators identified Le Trung Hieu as a person allegedly responsible for receiving consolidated funds and arranging their conversion into USDT before transferring the digital assets to wallets controlled by individuals abroad.

Reports say Hieu contacted 27 cryptocurrency trading counterparts through Telegram to arrange purchases. The investigation also identified Hoang Hai Van and Chau Duc Lam among the alleged intermediaries involved in over-the-counter cryptocurrency transactions.

Van was reportedly associated with daily trading activity of between seven million and ten million USDT across four or five digital wallets, equivalent to approximately VND 180 billion to VND 260 billion at the rates cited in the reports. Investigators alleged that wallet addresses were periodically replaced, making it more difficult to trace the movement of funds and identify the individuals controlling the wallets.

The reported organisation of the network extended beyond the use of multiple accounts and wallets. Investigators described separate functions for pricing, transaction coordination and customer management, suggesting a structured operation rather than a series of unrelated transfers. Reports also stated that internal guidance materials allegedly instructed participants on how to respond if questioned by law-enforcement authorities.

The use of cryptocurrency was significant because it provided a route for transferring value across borders after funds had passed through the domestic banking system. However, blockchain transactions are not inherently untraceable. The principal investigative challenge is often to connect bank transfers and cryptocurrency purchases with specific wallet addresses, identify the people controlling those wallets, and reconstruct subsequent transfers using financial records, communications and blockchain analysis.

The authorities have reportedly initiated criminal proceedings against individuals suspected of organising gambling, participating in gambling and laundering money. One October report stated that 28 suspects had been charged. An earlier briefing from Vietnam’s Ministry of Public Security reported 32 defendants in connection with the wider Hai Phong investigation, including nine charged with money laundering. The published reports do not reconcile the different totals, and the final number of defendants and the outcome of the proceedings remain uncertain.

Police also reported freezing 2,003 bank accounts across 36 financial institutions, with balances exceeding VND 3 trillion. The frozen funds represent a provisional investigative measure and should not be confused with money finally confiscated or recovered. Authorities are continuing to examine the accounts and transactions to determine the roles of the individuals and entities involved.

The case highlights several financial-crime risks for banks and digital-asset service providers. One is the use of personal bank accounts to receive payments from numerous unrelated individuals before rapidly transferring the funds elsewhere. Another is the apparent coordination of multiple accounts through shared devices, common transaction patterns or centralised instructions. When these characteristics occur together, they may indicate that accounts are being used as payment intermediaries rather than for their stated personal or commercial purposes.

The investigation also illustrates why customer identification checks alone may not be sufficient to detect money laundering. An account may be opened using valid identity documents but subsequently be controlled or operated for the benefit of another person. Effective monitoring therefore needs to consider actual transaction behaviour, including payment velocity, short holding periods, repeated pass-through transfers and links between apparently unrelated accounts.

For cryptocurrency businesses, the case reinforces the importance of understanding the source of funds used to purchase digital assets and identifying counterparties where required by applicable law. Over-the-counter trading arrangements can create additional complexity when several intermediaries are involved or when customers use changing wallet addresses. Nevertheless, the use of USDT, Telegram or multiple wallets does not independently establish criminal conduct; the relevant risks must be assessed alongside the surrounding transactions and evidence.

Vietnam’s investigation also comes amid wider international concern about the misuse of stablecoins and unhosted wallets in illicit financial activity. The Financial Action Task Force has examined risks associated with stablecoins and peer-to-peer transfers, including situations where transactions occur without an effective regulated intermediary. Such concerns provide broader context for the PinJoy investigation but do not establish that any particular financial institution or cryptocurrency provider breached its obligations in this case.

Authorities have warned that criminal networks may recruit individuals through advertisements promising easy online work, high salaries or payment for managing bank accounts and processing transactions. Individuals who allow their accounts to be used by others may face legal consequences if they knowingly assist unlawful activity. The investigation therefore also highlights the role of money mules in enabling larger financial networks to operate.

The PinJoy case demonstrates how suspected gambling-related proceeds can move through domestic banking channels before being converted into digital assets and transferred overseas. Its reported scale, the number of accounts involved and the alleged use of dedicated personnel and devices make it a significant example of the challenges faced by investigators tracing complex financial flows.

The investigation remains ongoing. Authorities have frozen substantial account balances and initiated proceedings against multiple suspects, but the final extent of criminal liability, recoveries and any convictions will depend on the evidence and the subsequent legal process.

By fLEXI tEAM