The Chinese authorities have reportedly arrested around 109 people in reference to the Plustoken Ponzi scheme. Around 27 of them are allegedly the scheme’s masterminds while the rest 82, are the key members. The Plustoken scammers have swindled funds worth around $5.7 Bln from over 2 Mln investors.
Plustoken MLM Scheme Scammers Arrested
Under the command of China’s Ministry of Public Security, the country’s principal police and security authority, Chinese police have taken down Plustoken, a leading MLM scheme using cryptocurrencies, native news outlet CLS reported recently on Thursday.
The Plustoken scheme has lured over 2 Mln investors who joined on over 3,000 levels. It’s swindled funds worth above 40 Bln yuan [approximately $5.7 Bln] from the victims.
The police have arrested all 27 alleged masterminds and 82 key members of the scheme. “The arrest completely destroyed this huge multinational MLM organization network entrenched reception and abroad,” the publication added.
Explaining further, Chainalysis added:
“Based in China, Plustoken presented itself as a cryptocurrency wallet that reward its users with high rates of return if they buy the wallet’s associated PLUS cryptocurrency tokens with Bitcoin [BTC] or Ethereum [ETH]”
The scammers claimed those returns would be generated by exchange profit, mining income, and referral benefits. Additionally, the token would be listed on several exchanges.
Earlier in June, 6 people linked to the scam were arrested. However, “the stolen funds have continued to maneuver via wallets and be cashed out through independent OTC brokers operating totally on the Huobi platform, showing that one or more of the scammers are still at large,” consistent with the blockchain analytics firm.
Scammers Have Enough For the Rest Of Their Life
Over time, the Plustoken scammers have moved an outsized number of cryptocurrencies, including BTC and ETH, prompting concerns that they’ll live enough of their ill-gotten gains to maneuver the market prices of BTC and ETH. For instance, they moved 789,534 ETH earlier in June, and than around 13,000 BTC to bitcoin mixers in March and almost 12,000 BTC in February.