The WinsBank system is suspected of using virtual currency as a means of raising capital and doing business in illegal multi-level method.
WinsBank is a product of the World Blockchain Holdings Limited Company (formerly Winsfun), with its address at 9 Barrack Road, Belize City, Belize. This company operates casino investments, betting, lottery; digital asset mortgage loans; virtual currency WinCoin (Win) and issuance of shares of eShare (ESR).
To attract investors, WinsBank has made many promises about the future of the virtual currency Win and the ESR share price, while offering economic benefits to deceive people to invest money in the WinsBank system.
WinsBank promises that investors will enjoy a fixed interest rate from 2 percent to 12 percent per year after participating in the system by buying virtual currency WinCoin, with 13 WinCoin investment packages worth from US$100 to $1 million or buying ESR shares with 16 packages from $100 to $1 million.
In addition, it said investors would receive additional profit when introducing new investors to WinsBank under the multi-level business model.
The police have discovered the WinsBank system is organised by a group of people in Vietnam, who are operating without a business registration and headquarters in the country.
WinsBank does not have any manufacturing activities, creating valuable products and services, but mainly operates under the multi-level model, taking money from new participants to pay interest and commission to older ones. When the money is high enough, the organisers will stop paying interest to the participants, and at the same time, collapse the system and run away with the money raised.
The model of selling ESR shares, trading the WinCoin virtual currency and paying bonuses through WinBank shows signs of multi-level business activities, which have not been licensed by the Ministry of Industry and Trade under the Government’s Decree 40/2018/ND-CP.
Illegal multi-level marketing activities, disguised in any form, will be handled according to the Criminal Code 2015, amended in 2017, on charges of violating regulations on business activities under the multi-level method.
“Vietnam has not recognised any type of virtual money and cryptocurrencies, so investors will bear a lot of risks when investing in virtual money investment activities and virtual products,” the ministry has noted.
The ministry notified people who have invested in the WinsBank system can go to the nearest police station or contact the Cyber Security and High-tech Crime Prevention Department to report and provide information.