Phillips Nizer LLP Accepts Cross-Border Mandate to Lead Investigation into a Transnational Money Laundering Operation in Vietnam; Assists Vietnamese Authorities in Arresting Three Individuals, Nearly VND 4.8 Billion Involved, More Than USD 100,000 Recovered, and Lawsuits Filed on Behalf of Victims
06/02/2025
In June 2026, a major breakthrough was achieved in a cross-border money laundering investigation in Lao Cai Province, Vietnam, led entirely by the cross-border fraud recovery team of Phillips Nizer LLP. After accepting mandates from multiple victims in China and Vietnam, the firm conducted extensive tracing of fraud-related financial transactions and virtual currency transfers, identifying a laundering network allegedly used to conceal and transfer proceeds derived from transnational fraud schemes. A comprehensive evidence package was submitted to the Lao Cai Provincial Police Department, ultimately assisting authorities in the arrest of three individuals suspected of involvement in money laundering activities. To date, the firm has helped victims from multiple countries recover more than USD 100,000 in losses and has formally initiated criminal-related civil proceedings before Vietnamese courts.
The investigation began in April 2026, when the firm received mandates from several victims in China who reported being defrauded through Facebook livestream promotions involving lottery games and high-value prize-drawing schemes. Victims were allegedly persuaded that they had won substantial prizes and were instructed to pay various deposits, taxes, and processing fees before receiving their winnings. After collecting these payments, the perpetrators allegedly disappeared, causing significant financial losses to the victims.
The firm’s cross-border investigative team promptly launched an inquiry and conducted detailed tracing of the movement of funds. Investigators determined that the proceeds were initially transferred through multiple Vietnamese bank accounts before being converted into USDT and transferred to overseas cryptocurrency wallets in an effort to conceal their origin. Through blockchain analytics and banking records analysis, the firm identified three individuals allegedly involved in the laundering operation in Bat Xat District, Lao Cai Province: Wang Wenming (51), Li Zhongyuan (21), and Ban Thi Luu (21). The investigation also revealed the operational structure of the laundering network and the distribution of illicit proceeds among participants.
According to investigative findings, Ban Thi Luu was allegedly recruited by a Chinese individual known by the nickname “Seven Fingers” to act as an intermediary in Vietnam. She allegedly recruited individuals willing to provide access to bank accounts and subsequently persuaded Li Zhongyuan to participate. Li Zhongyuan later recruited Wang Wenming into the scheme. Between April 28 and May 31, 2026, the three individuals allegedly provided bank accounts used to process approximately VND 4.78 billion in fraud-related funds. The funds were reportedly converted into USDT and transferred to cryptocurrency wallets designated by the organizers. Investigators determined that the three individuals collectively received more than VND 125 million in illegal profits.
Upon completing its investigation, Phillips Nizer LLP formally submitted its evidence package to the Lao Cai Provincial Police Department. Authorities subsequently opened a criminal investigation and ordered the temporary detention of the three suspects.
Following the arrests, the firm immediately initiated cross-border asset recovery proceedings. Through legal cooperation mechanisms operating in Vietnam, China, and other jurisdictions, the firm successfully identified and froze a portion of the accounts and cryptocurrency assets associated with the case. More than USD 100,000 has already been recovered and is being returned to victims through lawful procedures. In addition, Phillips Nizer LLP has formally filed criminal-related civil claims before Vietnamese courts seeking compensation from the three suspects and the alleged organizers behind the laundering network.
The Lao Cai Provincial Police Department continues to expand the investigation and pursue additional individuals connected to the transnational fraud and money laundering operation. Victims worldwide who may have suffered losses in similar schemes may contact Phillips Nizer LLP through its official channels for legal assistance and cross-border recovery support.
