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Chinese Authorities Take Down $6 Billion Plustoken Ponzi, Arrest 109 Individuals

Chinese authorities have reportedly arrested 109 individuals in relationship with all the Plustoken Ponzi scheme. Twenty-seven of these are supposedly the scheme’s masterminds and 82 are members. The Plustoken scammers have swindled funds worth roughly $5.7 billion in over two million shareholders.

Plustoken Scammers Arrested

Under the control of China’s Ministry of Public Security, the country’s primary authorities and security ability, Chinese authorities have discounted Plustoken, a significant multinational pyramid scheme with cryptocurrencies, neighborhood news outlet CLS reported Thursday.

The Plustoken strategy has enticed in over two million shareholders that combined on more than 3,000 levels. It’s swindled funds worth over 40 billion yuan (roughly $5.7 billion) in the sufferers.

The authorities have detained all 27 alleged masterminds and 82 primary members of this scheme. “The arrest completely destroyed this huge multinational MLM organization network entrenched at home and abroad,” the book mentioned.

“Based in China, Plustoken presented itself as a cryptocurrency wallet that would reward users with high rates of return if they purchased the wallet’s associated PLUS cryptocurrency tokens with bitcoin or ethereum,” Chainalysis clarified. The natives claimed those yields could be produced by exchange profit, mining income, and referral benefits. In addition, the token would be listed on several exchanges.

In June, six people connected to the scam were arrested. However, “the stolen funds have continued to move through wallets and be cashed out through independent OTC brokers operating mostly on the Huobi platform, showing that one or more of the scammers are still at large,” according to the blockchain analytics firm.

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Over time, the Plustoken scammers have moved a large number of cryptocurrencies, including BTC and ETH, prompting concerns that they may cash out enough of their ill-gotten gains to move the market prices of bitcoin and ether. For example, they moved 789,534 ETH in June, 13,000 BTC to bitcoin mixers in March and almost 12,000 BTC in February.

What do you think about the police taking down the Plustoken scam? Let us know in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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Yuuma Nakamura

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