Hai Phong police dismantle massive USDT laundering ring

Police in Hai Phong, Vietnam, have dismantled a massive USDT black market used to launder proceeds from transnational online gambling operations. The investigation revealed a sophisticated closed-loop money transfer system organized by Chinese nationals operating within Vietnam.

The network utilized local Vietnamese citizens to open bank accounts in exchange for monthly payments of approximately 5 million VND. Apartment complexes were repurposed as 24/7 processing centers where staff worked in three shifts to classify and circulate funds. The entire operation was managed remotely via encrypted Telegram groups.

Authorities identified Le Trung Hieu as a key link responsible for converting gambling proceeds into USDT to obscure the money trail. Other major suppliers of USDT included Hoang Hai Van, Chau Duc Lam, and over 20 others. Notably, Van’s system alone processed between 7 and 10 million USDT daily using multiple electronic wallets that were rotated weekly to evade detection. The group even utilized AI to create “Q&A” documents to instruct members on how to respond to police investigations.

As a result of the crackdown, 32 individuals have been prosecuted and detained, including 9 for money laundering and 23 for organizing gambling. Investigators have seized over 200 mobile phones and frozen 2,003 bank accounts across 36 banks, with total frozen balances exceeding 3,000 billion VND.