Chinese Police Nab Principal Actors of $5.7B PlusToken Crypto Ponzi Scheme

Share Article
In Brief
  • -Chinese police have arrested 109 persons connected with the PlusToken Ponzi scheme.

  • -The scam reportedly stole $5.8 billion from over 2 million victims.

  • -The arrest is the first of its kind involving a crypto-related Ponzi scheme.

  • promo

    Join the BIGGEST ICO ever launched in Spain: Buy B2M now.

The Trust Project is an international consortium of news organizations building standards of transparency.

Chinese authorities have reportedly nabbed 109 persons allegedly involved in the PlusToken crypto scam. 

Sponsored



Sponsored

According to Chinese news agency CLS, the arrests covered 27 suspected masterminds and another 82 alleged key members of the elaborate crypto Ponzi scheme. PlusToken reportedly siphoned $5.7 billion in cryptocurrency from over 2 million victims.

China’s Ministry of Public Security launched the crackdown that led to the arrest of the suspects. It forms the first major arrest by Chinese law enforcement against people involved in a crypto Ponzi scam.

Sponsored



Sponsored

Chinese authorities have reportedly been investigating the scheme since 2019 and had previously arrested six other alleged participants.

The news of the arrest comes at a time when Bitcoin is looking to begin a significant upward move beyond the $11,000 mark. Funds from the Ponzi scheme were moved on several occasions last year.

As previously reported by BeInCrypto, PlusToken scammers moved $100 million in Ethereum (ETH) back in December 2019, sparkings fears of a price dump.

Tweeting on Thursday, Dovey Wan, the founding partner of Primitive Crypto, pointed to research from Chainalysis that revealed an estimated $1 billion that had already been laundered.

The 109 persons arrested by Chinese police now join other indicted individuals associated with infamous crypto scams like OneCoin and BitClub. U.S. authorities did arrest and charge some OneCoin executives back in March 2019.

Despite news of the PlusToken scammer’s arrest, OneCoin scam mastermind Ruja Ignatova (aka Crypto Queen) is still in the wind. OneCoin reportedly stole $4 billion from victims around the world.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Osato is a reporter at BeInCrypto and Bitcoin believer based in Lagos, Nigeria. When not immersed in the daily happenings in the crypto scene, he can be found watching historical documentaries or trying to beat his Scrabble high score.

Follow Author

Market signals, studies and analysis! Join our Telegram Today!

Go

Bit2Me ICO JUST STARTED! Buy B2M token now.

Buy now!

The BIT Time Rush. 8M BIT to Be Won. Three Innings; Massive Winnings.

Join Now!