Vietnam Sentences 43 People in Massive $3.8B Illegal Crypto Gambling Case

A total of 43 people received harsh sentences by a Vietnamese court in a wide-ranging case of an illegal gambling ring, which was created by four siblings. Each of the kingpins of the illegal operations, which also included cryptocurrency, received between 8 and 13 years in prison.

Over 40 Sentenced for Crypto Gambling Scheme

Between early 2020 and late 2021, the network facilitated transactions amounting to $3.8 billion before being dismantled by law enforcement. Several defendants received prison sentences exceeding ten years, while authorities continue to search for an Indian national believed to have led the operation. 

Rather than using licensed or legal casinos, participants gambled via websites that accepted cryptocurrencies, despite crypto being illegal in Vietnam. At its peak, the scheme had around 20,000 customers, who were incentivized to recruit others through social media platforms like Telegram, which has been banned in Vietnam since June. 

The group is also allegedly involved in laundering funds abroad, an aspect currently under investigation in a separate, ongoing case. A significant portion of the illicit profits was used to purchase luxury vehicles and real estate.

What’s the Current State of Gambling in Vietnam?

Gambling has been outlawed in Vietnam for centuries, but in recent years, the government has begun exploring legalization through tightly controlled pilot programs and regulated casinos. Currently, eight casinos operate in the country, accessible only to foreign passport holders, though investors are increasingly interested in tapping into the local market. As part of a three-year trial, Vietnamese citizens are allowed to enter casinos if they can prove a monthly income of over 10 million dong (approximately $449) and pay an entry fee of 1 million dong.

Currently, Vietnam’s Ministry of Finance is reconsidering these parameters for allowing its citizens to enter casinos. While there are eight casinos in the country, only foreigners can enter them freely, while Vietnamese nationals have to meet specific criteria to enter. As of 2017, the largest hotel-casino in Vietnam was The Grand Ho Tram Strip, located in Hồ Tràm.

Opened in 2013 and controlled by Philip Falcone, the $1 billion complex features a 550-room hotel, a golf course designed by Greg Norman, and a second hotel tower that was under construction at the time. To qualify for a casino license in Vietnam, foreign investors must commit a minimum investment of over $2 billion.