Chinese authorities have arrested the individuals who allegedly carried out the PlusToken project. PlusToken is among the biggest scams in the history of cryptocurrency space and this arrest seems to bring it to an end.
A local Chinese news outlet reported that the Chinese local authorities arrested 109 individuals who are connected to the notorious PlusToken Bitcoin project.
The report noted that 27 of the arrested individuals allegedly belonged to the project’s core team and had fled out of the country. Likewise, the other 82 were key members and all were involved in the racket both in China and overseas, said the report. Dovey Wan of blockchain-based investment firm Primitive Ventures tweeted about it:
“FINALLY 27 core PlusToken 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…”
According to the report, investors lost various cryptocurrencies valued at an aggregate of about 40 billion Chinese yuan ($5.7 billion) to the scam. The Ponzi scheme evaded legal authorities since 2019.
Over 2 million individuals participated in the scheme with over 3,000 hierarchical relationships. The perpetrators behind the multi-level marketing (MLM) scheme allegedly spied on unwary investors with the promise that they would be offered fat payouts for their investment in the token.
The scheme was established in 2018 as a global cryptocurrency wallet project. The perpetrators claimed to have support from a South Korean team of ex-Samsung and Google employees. They were able to promote the scheme massively throughout Asia and reports had it that it gained the attention of more than 3 million users by May 2019.
They masked the funds using 6,000 wallets and cashed out stashes of Bitcoin, Ethereum, and EOS gained illegally. Their activities mounted huge bearish pressure on the price of Bitcoin.