Vietnam Convicts Dozens in Major Online Gambling Operation

A Vietnamese court has convicted four siblings and numerous associates in a significant online gambling and cryptocurrency case worth approximately $3.8 billion. The court’s verdict, reported by state media on February 8, 2024, followed a two-day trial in Ho Chi Minh City during which the defendants faced charges related to organizing and participating in illegal online gambling activities from early 2020 until late 2021.

The four siblings received prison sentences ranging from eight to thirteen years. In total, thirty-nine additional defendants were sentenced, with terms varying from three years, suspended, to over ten years. Authorities are also pursuing an Indian national, believed to be the mastermind behind the operation.

The organized group utilized illicit profits to acquire real estate and luxury vehicles in Vietnam while laundering money internationally. This prompted local police to initiate a separate investigation into money laundering activities.

The gambling operation designed websites that enabled multilayer investments using cryptocurrency, which is prohibited in Vietnam. Participants could create accounts, convert Vietnamese dong into digital currencies like USDT and Ethereum, and transfer these into e-wallets for online gambling purposes. At its peak, the network boasted around 20,000 users and an estimated 25 million accounts.

Many users earned commissions by recruiting new gamblers through platforms such as Telegram and other social media channels. In response to the widespread gambling activities, Vietnamese internet service providers blocked access to Telegram in June 2023 due to “signs of law violations” present on the messaging platform. Government reports indicated that up to 68 percent of the 9,600 channels utilized by Vietnamese on Telegram featured “poisonous and bad information.”

This recent case follows another incident where nearly sixty individuals were arrested in connection with a cryptocurrency fraud scheme that defrauded Vietnamese citizens of millions of dollars. This ring allegedly lured victims into investing in Bitcoin through a mobile application, only to abscond with their funds.

The actions taken by Vietnamese authorities reflect a growing concern over the influence of illegal online gambling and cryptocurrency operations in the region, underscoring the need for continued vigilance against financial crimes.