Liberty Reserve $24.5 million illegal business busted

Vietnam's Ministry of Public Security has just announced the completion of the investigation into this illegal business case.

While the United States has just announced the destruction of the largest money laundering ring in history, the Criminal Police Department (CSHS) of the Ministry of Public Security of Vietnam also announced the completion of an investigation into an illegal Liberty Reserve cryptocurrency business worth more than 24.5 million USD.

Buying and selling cryptocurrencies without a license from a competent authority is a sign of illegal business. Photo: Hong Vinh.

Setting up a company to trade in cryptocurrency

Previously, the General Department of Crime Prevention and Control, Ministry of Public Security received a request from Turkish Police for assistance in verifying a hacker with email[email protected]stole information and data of a citizen of this country named Tun Musfata, then asked the victim to transfer nearly 1,000 USD to a Vietnamese named Vu Van Su (in Hai Phong) through the Western Union money transfer system.

Next, the Office of the Legal Attaché - US Embassy in Cambodia also requested support to verify the criminal organization using high technology to steal data in computer systems for blackmail. In the case that the US Federal Bureau of Investigation (FBI) is investigating, there are a number of subjects in Vietnam who received money from the victim.

However, during the investigation, the Criminal Police Department of the Ministry of Public Security determined that the people named in the list provided by foreign authorities had never received money at Western Union agents.

In addition, the Criminal Police Department also clarified that in 2008, Vu Van Lang (born in 1983) established Thinh Vu Joint Stock Company (headquartered in Duong Kinh district, Hai Phong), acting as a sub-agent for BIDV bank, Hai Phong branch, to pay remittances through the Western Union system. However, in fact, Lang's establishment of Thinh Vu Company was only to serve the business of Liberty Reserve cryptocurrency.

According to the Investigation Police, to serve the purchase and sale of Liberty Reserve electronics, Vu Van Lang also opened the company INSTANT EXCHANGE LIMITED headquartered in Hong Kong - China and created a website.www.privatechange.comfor trading and advertising. After purchasing cryptocurrencies from domestic and foreign sources, Lang resells them to others for profit (transactions are made over the internet).

Those who bought virtual currency paid Lang by sending USD to Thinh Vu Company through Western Union. Then, the subject used photocopies of many people's ID cards to create profiles of customers receiving money.

In 2011, Thinh Vu Company had its contract unilaterally terminated by Western Union Vietnam and its operating license revoked by the Hai Phong Department of Planning and Investment.

Not giving up on his business, Lang agreed with Nguyen The Dung, Director of Giao Dich Nhanh Company Limited and Nguyen Van Chien, Director of Nam Phong Trading and Service Company Limited, to continue opening a bank sub-agent to pay foreign currency from Western Union to help Vu Van Lang do illegal business.

In return, Dung and Chien would receive a commission from the bank. During the investigation, the police determined that Lang had taken the names of more than 1,000 people and conducted nearly 60,000 transactions with a total amount of more than 24.5 million USD (equivalent to more than 404 billion VND) through 3 companies: Thinh Vu, Giao Dich Nhanh and Nam Phong.

Illegal profits of nearly 5 billion VND

Initially, Vu Van Lang confessed to having illegally profited nearly 5 billion VND from commission fees paid by the bank and from profits from buying and selling Liberty Reserve cryptocurrency. Lang used all the money he earned to buy a house, a Mercedes sports car, and branded phones...

The investigation agency determined that Lang's cryptocurrency trading was not licensed and managed by a competent State agency; it violated the crime of illegal business, according to Article 159 of the Penal Code. Dung and Chien were accused of assisting Vu Van Lang in committing the crime, and were proposed to be administratively handled and have the illegal profits confiscated.

During the investigation, the police also clarified that from October 21, 2008 to June 24, 2009, Lang took advantage of his right to pay foreign currency to help Nguyen Phi Khanh receive 15,502 USD. Khanh claimed that this money was earned from selling stolen credit card information of foreigners, but Lang did not know the source.

Foreign authorities suspect that Vu Van Lang may be involved in "money laundering" activities for criminal organizations; however, up to now, no documents have been provided to prove Lang's actions, so the Investigation Police Agency - Ministry of Public Security will separate related documents for later investigation and handling./.

According to (vov.vn) - LT