Xiang Guoquan, 43, along with two Vietnamese accomplices, Vo Tan Hiep, 30, and Tran Viet Huy, 28, were detained on charges of property appropriation fraud, police said on March 30.

According to investigators, the group operated an organised and sophisticated scheme involving both foreign and domestic actors. They allegedly set up the Merry Trade app in early 2025, promoting it as an online marketplace to lure investors while in fact running a fraudulent scheme. A front company, Merry Global Co., Ltd., was also established in Da Nang with registered capital of VND10 billion.

Authorities found that the platform was a fraudulent operation. Points accumulated on the app were artificially generated and not linked to any real commercial transactions.

Participants were encouraged to deposit funds in USDT (Tether), a US dollar-pegged stablecoin, in exchange for virtual points on the platform. Small initial withdrawals were allowed to build trust, but larger deposits were later blocked under various pretexts, allowing the group to seize the funds.

One victim from Thanh Hoa province reported she invested 15,000 USDT (about VND378 million) in hopes of opening a representative office. After making the payment, she was unable to withdraw funds as her account was locked, communication groups were deleted and contact with operators was lost.

Police said the group used various methods to conceal their activities, including international e-wallets, overseas domain registrations, and deletion of data from communication groups after defrauding victims. Despite this, investigators said sufficient evidence has been gathered to clarify each suspect’s role.

Police also confirmed that Merry Global Co., Ltd. had not registered for e-commerce operations in accordance with Vietnamese regulations, while its internationally hosted website failed to complete required legal procedures.

Between September and November 2025, the group allegedly defrauded thousands of victims nationwide, appropriating tens of billions of Vietnamese dong.

Police warned the public to stay cautious when engaging with unlicensed online platforms, particularly those showing signs of multi-level marketing schemes or requiring deposits via cryptocurrency.

The investigation is ongoing, and authorities urged individuals involved with the Merry Trade platform to come forward and assist with the case.

Hanoi police bust transnational fraud gang impersonating Japanese officers

VOV.VN - Police in Hanoi have dismantled a transnational cyber fraud ring accused of impersonating Japanese law enforcement officers to scam victims living in Japan, authorities said on March 3.