Vietnam Authorities Investigate Pi Cryptocurrency Activities

The Department of Cybersecurity and High-Tech Crime Prevention in Vietnam has launched an investigation into activities involving the cryptocurrency Pi, citing concerns over its complex and unregulated operations. Department head Le Xuan Minh expressed worries about the increasing popularity of cryptocurrency models like Pi, stating that they generate substantial online income unmatched by any other business activity.

According to VnExpress, Vietnam’s Ministry of Cyber Security and High-Tech Crime Prevention launched an investigation into Pi Network, saying there were signs that people were being lured into an MLM business model similar to the multi-level marketing model.…

— Wu Blockchain (@WuBlockchain) July 5, 2023

Coercion and Crypto MLM Schemes

Authorities have observed signs of individuals being coerced by cryptocurrency promoters to engage in business models resembling multi-level marketing schemes. As a result, law enforcement agencies across various localities are intensifying their efforts to investigate activities related to the Pi cryptocurrency. To protect citizens from potential risks, authorities have issued warnings against investing in cryptocurrency models that promise abnormally high profit margins or adopt multi-level marketing structures. Minh emphasized that such activities carry significant risks.

The Pi Network, established in 2019, experienced a surge in popularity within Vietnam in 2021. However, concerns have been raised about the transparency of the cryptocurrency, as it lacks the level of scrutiny typically associated with blockchain projects. This raises the possibility of fraudulent schemes or unauthorized data collection taking place within the Pi ecosystem.

A blockchain expert based in Ho Chi Minh City cautioned that many individuals still trust Pi, believing they have nothing to lose by joining. However, they run the risk of having their personal data compromised or stolen. It is important to note that cryptocurrencies are not considered legal tender in Vietnam. Engaging in their issuance, trading, or usage for payment can result in fines of up to VND 100 million (approximately US$4,240).

Vietnamese authorities’ investigation into Pi cryptocurrency activities aims to safeguard citizens’ financial well-being and protect them from potential scams or privacy breaches. As cryptocurrencies continue to evolve, regulatory agencies worldwide remain vigilant in monitoring and addressing potential risks associated with their usage.