Police in Quang Nam Province, central Vietnam have teamed up with the Ministry of Public Security to break up a major loan shark ring worth VND20 trillion (US$846 million) masterminded by a group of Chinese nationals.

A group of Chinese colluded with several Vietnamese people to operate the ring and made illegal gains of over VND8 trillion ($339 million), the Quang Nam police agency said on Monday.

The group also illegally transferred VND5 trillion ($211.5 million) to other nations.

Police officers discovered that many residents were encouraged to install the loan shark apps where borrowers could receive loans rapidly, but at usurious interest rates.

Preliminary investigation results showed that between late 2020 and July 2023, the group led the ring to offer loans at an annual interest rate of 2,346 percent to more than one million people nationwide through the ‘Great Vay’ app.

Other apps, including Abc Tien, cashGo, Like Tien, and Vi Dong, had their borrower database systems connected with the website https://xxxxxx.com, whose server is located in Singapore's Alibaba Cloud.

The racket established dozens of fake companies and used thousands of bank accounts for money laundering and illegal overseas money transfer.

In addition, the gang was found using violence to collect debts.

Through the probe, which was launched in early July, police arrested 11 ringleaders, including three Chinese, and over 40 Vietnamese accomplices.

Officers also examined three related firms and 28 sites, confiscating multiple relevant documents.

They blocked 11 real estate transactions worth VND70 billion ($3 million) and 88 bank accounts valued at over VND36 billion ($1.5 million). 

Police officers are expanding the probe into the ring.

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