A Vietnamese court has concluded one of the country’s biggest ever illegal gambling cases, sentencing 43 people for their roles in a cross-border crypto gambling operation that processed more than $3.8 billion.

The trial in Ho Chi Minh City was for four siblings who founded and ran the scheme. They got 8 to 13 years in prison. The other 39 defendants got 3 to 10 years with several getting suspended sentences.

How it worked:

  • Hidden online casino
  • 20,000 users and 25 million accounts
  • Bets in USDT and Ethereum
  • Transactions via e-wallets
  • Expansion through referral marketing on Telegram and social media

The operation used crypto to bypass traditional banking. Vietnamese dong was exchanged into digital currencies and used to bet on illegal platforms. Authorities said the scale and organization was like a full-fledged online casino.

Police also found large scale money laundering. Criminal proceeds were used to buy luxury cars, high-end properties and to transfer money abroad. A key suspect — an Indian national believed to be the mastermind — is still at large.

Vietnam banned the use of crypto for payments in 2018 but trading them as assets is still a grey area. Officials now say crypto is being used more and more in online gambling making it harder to enforce and increasing the risk of financial crime.

In June, Vietnam blocked Telegram citing its role in illegal gambling and spreading misinformation. This crackdown is part of a broader trend: Southeast Asian countries are seeing more crypto-tied gambling cases and moving towards tougher regulation and enforcement.

The verdict is clear: Vietnam will go after illegal online gambling networks especially those that use crypto to evade the law.