Vietnamese authorities flag risks in Pi cryptocurrency operations.

The Department of Cybersecurity and Crime Prevention in Vietnam’s high-tech sector announced the initiation of an investigation into Pi-related cryptocurrency activity. As reported by VNExpress.

“Operations of such models are extremely complex and uncontrollable. There is no other business that could yield such a high level of income,” said Le Suan Minh, head of the department.

The agency identified signs of a network marketing scheme by project participants сетевого маркетинга.

Authorities warned citizens against investing in cryptocurrency models with abnormally high profit margins due to “the presence of many risks”.

The Pi Network appeared in 2019 and two years later it reached a peak of popularity. The cryptocurrency lacks transparency and could be used for illicit activities such as fraud, according to the publication.

In 2021, media reported that the Pi Network app, which allows mining digital currency on mobile devices, may be involved in a leak of 17 GB of personal data of Vietnamese users.

AIMultiple analysts at the time assessed Pi Network and concluded that the platform shows signs of a multi-level marketing scheme.