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In March 2017, TorrentFreak? reported that the U.S. ambassador to Vietnam, Ted Osius, had been in talks with the local Minister of Information and Communications, Truong Minh Tuan, about shutting down illegal video streaming sites operating from Vietnam, and listed 123movies as one specific site.

In October 2017, the MPAA listed 123Movies (and GoStream?.is) in its Online Notorious Markets overview to the Office of the United States Trade Representative, stating that while the site was technically hosted from Ukraine that: "The site takes numerous steps to hide the identity of the operator, including using Cloudflare, but there is strong reason to believe the operator is still in Vietnam; content is uploaded using cyberlockers from numerous email accounts originating from Can Tho University of Medicine and Pharmacy".

In March 2018, the MPAA said that the site was the "most popular illegal site in the world", stated it was operated from Vietnam and estimated that it received 98 million visitors per month. On 19 March 2018, a note on the site's home page announced its shutdown, and urged users to "respect filmmakers by paying for movies and TV-shows".

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