A lucrative gambling ring in Vietnam, which enabled players to bet in digital currencies and stablecoins, has been unearthed by police.
Reported by VN Express, it was revealed that as a result of the $3.8bn gambling ring being uncovered, four siblings have been placed under arrest in the region – pending further investigations into the alleged crimes.
The ring allowed bettors to engage with the illegal market through ETH and Naga tokens, as well as the most popular global stablecoin by market cap, USDT.
Variety utilised within the currencies being offered underlines how widespread the operation is and the full spectrum of demographics that it caters to.
The usage of USDT also emphasises a desire to engage players that aren’t versed with the crypto space or shy away from the volatility, given USDT pegged against the US Dollar to provide stability associated with fiat currencies. Furthermore, it also raises questions being asked by leaders in global markets that have touted the potential for implementing a stablecoin within their economy.
The alleged ringleader of the underground operation is Huynh Long Nhu, 32, who was arrested along with his brothers Huynh Long Tu and Huynh Long Bach, as well as their sister Huynh Thi Ha Tay.
Activity for the group was fuelled by Telegram messages as the group collaborated to organise the operation – even incentivising those who brought other players into the activity.
According to the report, both Remitano and Binance were utilised as part of the payment journey for players engaging with the illegal market.
Aside from the lottery, gambling in Vietnam is prohibited, however, foreign tourists are allowed to bet at specific locations, within largely populated tourist areas.
The tight restrictions for locals however, have caused the black market to thrive in the region – even causing the government to explore the idea of loosening regulation around the sector.
Earlier this month, a location in Ladprao Soi 18 was raided over allegations of operating an illegal gambling ring, leading to the arrest of one Chinese and three Vietnamese nationals.
As a result of this, a myriad of technological products were seized including a number of Ledger Nano X cryptocurrency hardware wallets containing USDT digital currency.
Police Colonel Pornthep Chalermkiat, Superintendent of Sutthisan Police Station, stated at the time: “We found evidence of gambling website operations on their computers, with content in Chinese encouraging users to place bets.”
Thailand take note
The approach to cater a whole sector solely to tourists and exclude domestic citizens is one that was previously explored by Thailand as the country implements its new framework.
The threat of the black market has been touted as a major reason to avoid this approach though, with the Deputy Finance Minister Julapun Amornvivat recently revealing that the previously touted criteria for entry to casinos would fail to solve issues of illegal gambling.
He stated that there were just 10,000 deposit accounts in the country with more than 50m baht, which would mean a large number of players would simply be unable to enter casinos.
Furthermore, the value of the market would feel a major uplift should it be inclusive of domestic players, rather than just being focused on tourists.
The locations for the casinos in Thailand were recently revealed as Bangkok, Chonburi, Chiang Mai and Phuket.
All four locations singled out hold a significant tourist economy, underpinning the nature of the venues. This shouldn’t come as a surprise though, as it has been detailed that the venues won’t be solely for gambling.
With the legislation likely only enabling 10% of floor space for gambling activities, leading to them becoming entertainment venues, hosting a myriad of events.
News of the decision comes amidst delays in cementing the final details of the legislation.
