27 core PlusToken pyramid suspects arrested in China; losses exceed $5.8 billion

Chinese police have arrested 27 top suspects in the operation of the PlusToken cryptocurrency pyramid. Also detained were 82 key members of the group, who had been hiding domestically and abroad. This was reported by Dovey Wan, managing partner of Primitive Ventures.

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 🌕 pic.twitter.com/SiDJVSqA5J

— Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) July 30, 2020

According to law enforcement authorities, about 2 million people were victims of PlusToken. The total losses from the pyramid’s activities amounted to $5.8 billion, although earlier figures had put it at $3 billion.

there is detail report by @chainalysis and @ErgoBTC re movement of the scammed fund

IIRC there is at least $1B has been laundered and split and there is a recent movement in their EOS/ETH pool too, still need to keep an eye on the fund movement

— Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) July 30, 2020

«The pyramid-linked fraudulent fund recently laundered at least $1 billion. There is movement of funds in EOS and ETH now,” added Dovey Wan.

As reported, developers of the PlusToken crypto wallet are suspected of creating the largest Ponzi scheme in China.

PlusToken was launched in 2018 and positioned as a decentralised solution and an “international cryptocurrency project”, allegedly supported by a team from South Korea and promoted primarily in such Asian countries as China, Japan, Myanmar, Vietnam, as well as in the EU and Russia.

For the company there were clear signs of a financial pyramid. Investors were offered a referral system and the opportunity to earn monthly returns on invested funds of between 6% and 19%.

In March 2019, the police of Hunan province launched an investigation into the PlusToken case. Since then the head of the Chinese division Chen Bo, along with five other project-connected Chinese citizens, have been on the run. In August 2019, Chinese police managed to arrest them.

For more on how the PlusToken-pyramid’s laundered bitcoins affect the price and how this ties into third-party exit scams, read ForkLog’s special material.

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