Victor Ugochukwu · Dec 14, 2020 . 5min read
China Indicts Six People in respect to PlusToken Ponzi Scheme
Chinese authorities have purportedly charged six people in association to planning and leading the PlusToken Ponzi Scheme.
By Komal Joshi · Sep 11, 2020 . 5min read
Chinese Authorities have recently arrested Six of the 109 individuals connected with the $5.8 billion cryptos Ponzi PlusToken. The Plustoken scheme attracted more than 2 million investors who registered on over 3,000 levels. It has defrauded funds of approximately $5.7 billion from the victims. The China police arrested all 27 alleged masterminds and 82 key members of the scheme.
Earlier, under the command of China’s Ministry of Public Security, the country’s principal police and security authority, Chinese police pulled down Plustoken, a major multinational pyramid scheme using cryptocurrencies.
Prosecutors charged the defendants Chen Shaofeng, Luu Jianghua, Lu Jianghua, Lu Qinghai, Jin Xinghai, Wang Yin, and Zhang Qin in Xiangshui County and Yancheng City on September 7. The prosecutors indicted them based on planning and leading criminal pyramid schemes.
What is PlusToken Ponzi Scheme?
South Korea-based PlusToken promoted itself as a high-yield financing opportunity for traders involved in cryptocurrencies. They were successful in luring the investors as the assured 9% to 18% in monthly returns, to investors in South Korea and China. However, they then deposited Bitcoin (BTC), Ethereum (ETH), and EOS on the platform. Members were inspired to bring others to the fold in trade for a commission. Thus, producing a Ponzi scheme of massive proportions.
Over time, the Plustoken scammers have moved a large number of cryptocurrencies, including BTC and ETH. For instance, they transferred 200,000 Bitcoins, 789,000 Ether and 26 million EOS from around $3 million gullible investors by May 30, 2019.
According to Chainalysis, the Plustoken manifested itself as a cryptocurrency wallet that would remunerate users with high return rates. If they bought the wallet’s associated PLUS cryptocurrency tokens with bitcoin or ethereum, they would get remunerated. Moreover, the scammers were claiming that those returns would be via exchange profit, mining income, and referral bonuses.
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