People behind the Bitcoin scam project, PlusToken, arrested by the Chinese Police. According to the report by a local media news outlet, Chinese authorities have arrested all team members that are involved in the scam.
PlusToken is the biggest cryptocurrency scam in the history of digital currency. Per the report of Cailian News, 109 people have been arrested by local authorities in China, and 27 out of 109 are core team members.
Founding member of Primitive Ventures, Dovey Wan, said,” I sincerely hope this attempt can be a good learning experience for the Chinese community to start an effective DAO [Decentralized Autonomous Organization], a bottom up governance, a real movement from the people that’s for the people.”
It Scammed $5.7 Billion from Investors
Fake project PlusToken scammed almost 40 billion yuan worth $5.7 billion from the investors, and it is counted in one of the largest cryptocurrency scams.
PlusToken project launched as a crypto wallet in 2018 and was promoted by claiming that it is backed by the ex-employees of renowned companies-Google and Samsung.
The report reads:
“This case is the first online pyramid scheme that used Bitcoin and other digital currencies as a trading medium to be detected by the public security organs. It involved more than 2 million participants, with more than 3,000 hierarchical relationships, and the total value of digital currencies involved exceeded 40 billion yuan.”
Bitcoin Magazine reported in 2019:
“This attracted more than 200,000 bitcoin (1 percent of the outstanding supply, or the entirety of the Winklevi’s bitcoin holdings), 789,000 ether and 26 million EOS. As of this report, the ringleader of the operation is still at large and funds are still on the move.”
“PlusToken also featured a sophisticated app, which allowed its users to instantly convert Chinese yen into bitcoin, ethereum, eos, doge, litecoin and other altcoins, which they could, in turn, convert to PLUS. Proportional to their original investment and how many new users they onboarded to the scheme, users were paid out exclusively in PLUS tokens,” Bitcoin Magazine added.