In China, creators of PlusToken pyramid scheme charged

The Xiangshui County People’s Procuratorate has charged six founders of the PlusToken cryptocurrency pyramid. They are charged with organizing and operating a fraudulent scheme, as stated in the department’s filing.

The pyramid operated under the guise of a cryptocurrency wallet. According to the prosecutors, key PlusToken participants attracted investors with monthly returns of 10-20% and through a referral program. They managed to attract about 3 million people.

Earlier in June 2019, users began reporting problems with withdrawals. In August, police detained six suspected PlusToken founders for fraud.

In late July 2020, Chinese law enforcement arrested 27 principal suspects in organizing the activities of the cryptocurrency pyramid. Also detained were 82 key members of the group. The losses from PlusToken are estimated at $5.8 billion.

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