Ringleader Faces Criminal Charges In China

One of the masterminds behind PlusToken is facing criminal charges in China. One thing the last 18 months has shown is that PlusToken is one of the biggest scams in the history of cryptocurrency. 

Local media news outlets report that the mastermind with the name Zhou will face public prosecutors in Jiangsu Province. The local police withheld Zhou’s last name from the press. 

Zhou reportedly publicized the PlusToken wallet through Wechat and other channels across the Internet. As part of his promotion, Zhou claimed the wallet App, is a cryptocurrency financial management app. 

By registering four different accounts with various fake names in the wallet, and as such, he was able to lure close to 2 million people into the pyramid scam. 

The Ponzi Scheme 

According to local authorities, the wallet in the guise of a crypto-financial management application allows the criminals to recruit members with the promise of high returns based on the investors they can bring. 

Police said they received complaints from the public in regards to the scam early last year. Local police said: 

“In the name of providing a cryptocurrency appreciation service, the platform falsely claims that it has the function of mining cryptos, and requires members to pay the certain value of cryptocurrencies such as Bitcoin, Ethereum, EOS, etc., so as to obtain high static income.”

Other Parties 

Local police stormed Vanuatu and arrested 6 people involved with the scam. They were extradited to mainland China late last year. Reports suggest that the scam led to a loss of nearly $2.9 billion.

After the arrest, PlusToken members found that they couldn’t withdraw funds from their accounts. Members were told that their withdrawals were frozen due to various technical complications. By June last year, the app had ceased operation citing regular system maintenance. 

During their heyday, the perpetrators claimed the PlusToken, based on Ethereum blockchain, could deliver a return of investment in the range of 8%-16% monthly.  

 

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