Despite lacking official licensing, the cryptocurrency exchange BitEXC and the BOM Network platform have continuously advertised and communicated their services, causing investors to believe in the legitimacy of these entities mistakenly.
BitEXC and the Legal Issues of Unlicensed Cryptocurrency Exchanges
In early December 2024, a new cryptocurrency exchange named BitEXC emerged in the market, using the slogan “Powered by Bitget,” suggesting a connection or direct support from the Bitget cryptocurrency exchange. BitEXC promotes services such as buying and selling digital assets, futures trading, and staking through its website at https://www.bitexc.com/vi/. However, there wasn’t any transparency regarding details about the founding team, legal address, or official relationship with Bitget, raising concerns about its legality and the potential risks for investors.
The Bitget cryptocurrency exchange itself, which is considered the “parent company” of BitEXC, is also operating without any approval from Vietnamese regulatory authorities. On a global scale, Bitget has avoided transactions in countries with clear legal frameworks such as the United States, Singapore, and Canada. According to a survey by Similarweb, Bitget’s main markets include Japan, Indonesia, India, South Korea, Vietnam, and Russia.
Caution Against Unusually High-Profit Promises from BOM Network
In late November 2024, following a major event held at a five-star hotel in Hanoi, many investors sent information about BOM Network and raised concerns regarding the accuracy of the unusually high-profit promises made by the project.
BOM Network introduces itself as the “first digital bank on the Mantra network,” offering services such as staking, buying and selling NFTs, and asset management through the metaverse. However, details about the founding team, contact address, and the legal basis of the project are not clearly disclosed on the official website of this entity at https://bomnetwork.io.
In reality, Mantra is a vertically integrated Blockchain ecosystem aimed at bringing Real-World Assets (RWA) onto the Blockchain, launched in 2020. The Mantra ecosystem includes Mantra Chain (which owns the OM token) and three other main products: Mantra Node, Mantra Finance, and Mantra DAO. The OM token is currently ranked 46th among global tokens, with a total market capitalization of $3.2 billion. However, official Mantra channels do not show any relationship or collaboration with BOM Network, contrary to what BOM Network representatives claim.
Meanwhile, BOM Network’s token, the BOM token, is not publicly listed on any exchanges and is only available for investment through private seminars and events.
BOM Network promises returns of up to 35% per year (APY) for staking the OM token (from Mantra) on its platform, a significantly higher profit compared to similar offers on other platforms. For new projects like BOM, which have low liquidity and a small community, such unusually high-profit promises could be a sign of a Ponzi scheme.
In particular, BOM Network has used the personal image of Mr. Tony Tong, Co-Chairman of the Hong Kong Blockchain Association (HKBA), to instill additional trust among investors. However, when the Vietnam Blockchain Association (VBA) directly contacted Mr. Tony Tong, he clarified that the HKBA had no involvement in the BOM Network project. He further explained that he was only invited as a speaker to discuss regulations from Hong Kong’s Securities and Futures Commission (SFC) and ETFs, without providing any investment advice related to the BOM Network project.
Furthermore, BOM Network is not listed among the organizations or companies authorized by Vietnamese regulatory authorities to operate in the fields of finance, blockchain, or cryptocurrency.
Caution When Investing in Unauthorized Cryptocurrency Platforms and Exchanges
In light of numerous cases involving unauthorized cryptocurrency platforms and exchanges, the Vietnam Blockchain Association (VBA) urges investors to exercise caution due to the risk of capital loss when investing in projects without clear legal foundations, such as BOM Network. For such projects, investors may face situations where they are unable to withdraw their funds or lose the entire amount invested.
For unlicensed cryptocurrency exchanges like BitEXC, investors will be at risk of not being protected in the event of disputes, exposing them to the dangers of asset loss, fraud, and scams. If investors suspect that a project or platform, such as a cryptocurrency exchange, is engaging in fraudulent activities, they are advised to report it immediately to the relevant authorities or the Vietnam Blockchain Association via the official website https://blockchain.vn or email: [email protected].
The Vietnam Blockchain Association is committed to continuing to monitor and update information related to BitEXC, BOM Network, and similar platforms, and will cooperate with the authorities to safeguard the interests of investors.