Chinese law enforcement authorities arrested 109 suspects who are related to popular fraudulent scheme PlusToken. 27 of those arrested allegedly belong to the “core” of a criminal gang, they operated abroad. The other 82 are “key” members among the founders of a financial pyramid.
It is a sad finale PlusToken — Ponzi scheme, which brought its creators tens of thousands of stolen bitcoins from unsuspecting investors. The suspects chased in several countries, the total damage from their activity is estimated in billions of dollars in various currencies. In the end, fraud is considered the most ambitious in the industry of cryptocurrency.
Sunset PlusToken: summarize
Recall the first revelations concerning PlusToken began to appear in the summer of 2019. The project was launched in 2018. The scammers claimed that their team consists of former employees of Samsung and Google, are busy creating a new cryptocurrency wallet. PlusToken especially actively promoted in Asia, which just a few months the user base of the project reached the mark of three million people.
The event was reported by a popular insider and founding partner of Crypto Primitive Dowie van. That’s her quote.
FINALLY. 27 main team members PlusToken arrested by the Chinese police. It is also the largest cryptocurrency fraud scheme in history to date. The fraud cost investors $ 3 billion. The bulls now have little baggage, so let’s send the cryptocurrency to the moon.
27 PlusToken core team members are all arrested by Chinese police, the biggest crypto scam in the history so far, $3B worth of crypto is scammed
Bulls now have little to no baggage 🧳 and lets send it to the 🌕 pic.twitter.com/SiDJVSqA5J
— Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) July 30, 2020
In fact, behind the beautiful promises of hiding a classical financial pyramid. It has formed more than 3,000 hierarchical branches, with the total investment in PlusToken reached billions of dollars, according to Decrypt.
The criminals were ready for the RAID: they used thousands of cryptocurrency addresses to conceal their tracks. Illegally obtained funds they tried to withdraw via different cryptocurrencies, including Bitcoin, Ethereum and EOS. At the time, because their activity cost BTC seriously collapsed in a very short time.
Note that the scale of the Scam was really huge. It came to the point that analysts linked their activity with almost every notable drop in the exchange rate of Bitcoin. For example, in December 2019, the representatives of the research firm Chainalysis notedthat BTC fell below 7 thousand dollars just because of the organizers of the pyramid PlusToken. The same version was voiced by other experts in the first half of March of this year when Bitcoin dipped below 8 thousand.
This may sound suspicious, but the logic of such a conclusion really is. Still a Scam was huge amounts of coins and selling large shipments of BTC could negatively affect the market.
Also in March, the scammers, to discuss the insufficient level of protection of centralized exchanges. As argued by analysts associated with the scheme people sold stolen cryptocurrency platforms with the need to prove my identity according to the scheme of KYC. Accordingly, the strict identification of the traders does not stop hackers.
Unfortunately, the exact count of the victims, losses and the payment of possible compensation can be delayed for many years. However, in the history PlusToken set bold point — now scammers exactly nobody will be deceived and will spend many years behind bars.
We hope that this will be a great reminder to users about the risks of cryptocurrencies. Ideally, it should force them to devote more time to security and the study of its foundations, not to deter from investing in bitcoins, esters and other coins. However, some victims of the scheme can certainly associated with fraud all niche cryptocurrency, and for all tie with her. Although this attitude was not entirely true.
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