Komal Joshi · Oct 19, 2020 . 6min read
Chinese Police Arrests 27 More Plus Token Scammers
Chinese Police authorities have arrested as many as 27 more masterminds behind the Plus Token Ponzi scheme.
By Victor Ugochukwu · Jul 31, 2020 . 6min read
Recent reports from several Chinese media outlets indicate that Chinese Police authorities have arrested as many as 27 more masterminds behind the Plus Token Ponzi scheme.
A Twitter user by the handle @DoveyWan who has been following and tracking the Plus Token Ponzi story tweeted
Surprisingly, Plus Token Ponzi scheme is rumoured to be one of the biggest scam networks that existed and ran up to 30th June 2019. A report even touts it to have held up to 1% of Bitcoin total supply.
In fact, Chinese authorities since 2019 started clamping down on the perpetrators of Plus Token. Many of them who sought to flee to Vanuatu had some of them deported.
Accordingly, Plus Token is a classic Ponzi scheme which lures unsuspecting victims to invest. They promise their victims high returns with low investments. Its operators maintain an illusion of sustainable business. They do this by pretending the funds are used to develop cryptocurrency-related products.
Consequently, Plus Token victims began noticing early signs of trouble started by June of 2019. Many of them experienced delays in fund withdraws and took to Weibo – the Chinese Twitter to complain.
Furthermore, analysis by independent researchers and others shows a massive volume in funds scammed. Plus Token operators and masterminds may have scammed their victims more than $3 Billion in Cryptocurrencies. (Bitcoin, Ethereum, and EOS) in the Plus Token Ponzi scheme.
Plus Token Ponzi masterminds launder their funds through exchanges
In late November 2019, this issue was again brought to the forefront when Twitter user Ergo reported having traced 187,000 BTC of the approximately 200,000 BTC attributed to PlusToken’s investors. As to these funds, Ergo found they were “shuffled”. However, the mixing went on gradually as they are sent to various cryptocurrency exchanges and OTC brokers. Huobi is the major exchange where they target to sell off massively.
Also, it is common practice for scammers to use crypto exchanges with lax KYC/AML rules in place. FATF’s travel rule has warned against this, and leading peer to peer exchanges like LocalBitcoins only recently integrated Elliptic’s technology to ensure strict transactions compliance.
Even though PlusToken is not the usual conventional crypto scams, it is now on record to be one of the biggest ever Ponzi scheme to have ever existed. It beats both OneCoin and Bitconnect.