Victor Ugochukwu · Dec 14, 2020 . 5min read
$4.2 Billion worth of Crypto assets of Plus Token Ponzi scheme seized by Chinese officials
Chinese police have seized over $4.2 billion worth of crypto assets like bitcoin, ethereum, etc in relation to the Plus token Ponzi scheme.
By Komal Joshi · Nov 28, 2020 . 5min read
The Chinese police have seized more than $4.2 billion worth of crypto assets in its crackdown against the Plus Token scheme, a recent local court ruling revealed. According to the reports, the Jiangsu Yancheng Intermediate People’s Court ruled against the perpetrators of the multi-billion dollar crypto scam on November 19. However, the details came out in the public domain on Thursday.
The court has sentenced 15 people connected with the scheme so far. Thus, sentencing imprisonment for 2-11 years, simultaneously with fines from $100,000 to $1 million. Earlier, the local media informed that the Chinese police detained 27 masterminds of the crypto scam. However, various blockchain analytics companies were determining the value of the seized assets from the Ponzi scheme. Nevertheless, this is the first time an authoritative figure of the seized Plus Token-related crypto assets revealed.
For the uninformed, Plus Token was a classic Ponzi scheme that lured unsuspecting victims into investing. They promised their victims high returns with low investments. Its operators maintained an illusion of sustainable business. They did this by pretending the funds are used to develop cryptocurrency-related products. Plus Token victims began noticing early signs of trouble starting from June 2019.
Chinese Police seized 194,775 Bitcoin.
According to the reports, the police seized 833,083 ETH, 194,775 BTC, 1.4 million LTC, 27.6 million EOS, 487 million XRP, 74,167 DASH, 6 billion DOGE, 79,581 BCH, and 213,724 USDT from seven convicts after their crackdown. Moreover, the valuation of these assets falls at approximately $4.2 billion. About 2.6 million investors fell for the fraudulent crypto scheme, with Plus Token 3293 layers during its operational period between April 6, 2018, and June 27, 2019, the court detailed.
However, the Plus Token has made a global impact, but, the majority of the victims belong to China and South Korea. According to the documents the scheme tricked the victims, therefore ransacking 314,000 BTC, 117,450 BCH, 96,023 DASH, 11 billion DOGE, 1.84 million LTC, 9 million ETH, 51 million EOS, and 928 million XRP.
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