Online rotating savings: Legal risks after a VND 200 billion collapse

Risks of online hui

With just a few clicks on Facebook or Zalo, a hui group can be created and quickly attract dozens or even hundreds of participants. Most members know little about the organizer’s identity, assets, or financial capacity, relying only on short introductions and bank account numbers. This makes online hui highly vulnerable to fraud and collapse.

According to lawyer Nguyen Tan Dat (HCMC Bar Association), participants face major challenges proving their rights and obligations in disputes since most transactions lack proper evidence or legal documents. If signs of criminal activity exist, the case will follow criminal procedures. If not, victims must pursue civil lawsuits, but asset recovery is often limited, especially when the organizer owes many people simultaneously.

Current legal framework

Decree 19/2019 stipulates that hui, phường, biêu (rotating savings) may only be organized for mutual support purposes. They must not be turned into high-interest lending, illegal fundraising, or fraudulent schemes. Depending on the act, the organizer may face administrative, civil, or criminal liability.

• Using fraudulent tricks to collect money and then absconding may constitute fraud to appropriate property (Article 174 Penal Code).

• Receiving money but deliberately failing to repay despite having the ability, or misusing it until insolvency, may constitute abuse of trust to appropriate property (Article 175 Penal Code).

• Under Article 471 of the 2015 Civil Code, hui is recognized as a customary asset transaction requiring clear agreements. Profit-making hui must comply with interest rate rules.

Additionally, Decree 144/2021 provides for administrative sanctions against violations in hui organization.

How to reduce risks

To avoid losses in online hui, participants should:

1. Choose reputable organizers with verifiable identity and financial capacity. Avoid online hui due to verification difficulties.

2. Request written agreements and transaction records. Contributions and payouts should be made via bank transfer or receipts, not cash without documentation.

3. Avoid large-scale hui. Only participate at levels matching your financial ability, and do not be lured by promises of high returns.

4. Actively protect your rights. Report any signs of fraud, trust abuse, or illegal fundraising to authorities immediately.

Although laws exist, recovering money in online hui collapses remains extremely difficult. The safest approach is to rely on official and legal investment channels to protect your assets.