The team behind popular PlusToken, one of the biggest cryptocurrency scams, seems to have reached the end of the road as local reports today revealed that 27 core team members of the scheme have been arrested by Chinese law enforcement.
According to the report, the Ministry of Public Security has been investigating the “PlusToken platform” network pyramid scheme. The public security organs then joined efforts and took necessary steps and were able to fish out the key members behind the scheme.
With the investigations being a success, the Chinese police were able to arrest 27 major criminal suspects and 82 members of PlusToken. This case marks a record in the history of the public security organs as this is the first time the Chinese police have cracked down on a major international Ponzi scheme that involved Bitcoin and cryptocurrencies.
PlusToken was a Chinese cryptocurrency Ponzi scheme that acted as a wallet and investment opportunity, promising investors high monthly returns. The owners were able to onboard millions of unsuspecting investors through several conferences and meetups to promote the platform’s native token called PLUS
The project was launched in 2018 and was in operation until mid-2019. According to the report today, the scheme stole an estimated $5.8 billion worth of crypto assets from about 2 million investors around the world.
After pulling an exit scam, the scammers have been moving the stolen funds. Several Coinfomania reports tracked the movement of the funds.
A June report revealed a fresh wave of Ether (ETH) worth $190 million that was transferred from the PlusToken scam official wallet address to multiple unknown addresses. Moreso, a report released in May, suggested that PlusToken Scam was still holding 0.7% of ETH supply at that time.
ETH was not the only cryptocurrency stolen by PlusToken. The project accepted multiple currencies from investors including Bitcoin and EOS. As reported in February, the scammers were seen moving $117.3M via Bitcoin.