The Da Nang Police Department on Tuesday issued a warning against raising capital and financial activities in form of multi-level marketing scams online related to Bitcoin, Daycoin, and other digital currencies.

The warning came after the Economic Crime Investigation Division of the Department had received public complaints about cryptocurrency scams that have swindled a hefty sum out of many victims by duping them into investing in virtual currencies to earn easy, ‘real’ money.

In recent times, many cryptocurrency investors make “easy money from simple investment” – using cash to buy bitcoin, and sell them when prices are up.

As these currencies are digital, and pseudo-anonymous with no government backing, investment and trading activities, as well as raising capital through initial coin offerings (ICO), especially in a multi-level marketing mode, are getting complicated and risky. This has affected the stability of the financial market and social order.

To avoid being swindled, the public should guard themselves against pyramid schemes that advertise themselves as cryptocurrency exchanges with promises of easy and hefty profit.

The amended Vietnamese Penal Code, taking effect on 1 January, 2018, criminalizes the issuance, supply and usage of cryptocurrency, a digital or virtual currency that uses cryptography for security, and those who break this rule will be subject to fines or even criminal charges.