China’s PlusToken cryptocurrency project has so far had the opportunity to become the industry’s largest fraud case. Recently, the Chinese public security united multinational governments and arrested 109 key members, of which 27 were the main suspects. This platform, which uses blockchain and cryptocurrency as a gimmick, claims that users can get high returns after depositing cryptocurrency. However, in June last year, his team suddenly carried away privately, and the case involved more than 40 billion yuan (~$5.73 billion USD)
According to a report from China’s “People’s Daily” today, the Chinese public security had discovered someone suspected of committing crimes using a cryptocurrency trading platform through pyramid schemes early last year. In June of the same year, the public security team cooperated with the police of Malaysia, Cambodia, Vietnam, and Vanuatu to arrest 27 core members of PlusToken who were hiding in various places. In March of this year, the Chinese public security also arrested all 82 members suspected of pyramid schemes in China. According to public security information, the MLM fraud involved more than 2 million people, and there were more than 3,000 MLM levels.
As early as May 2018, PlusToken began to establish a so-called trading platform. After users recommend online and pay more than 3,500 yuan in cryptocurrency, they can obtain membership. Members receive Plus tokens according to the funds they have paid, and form an online and offline relationship according to the order of joining. The platform will issue a corresponding amount of Plus tokens in return for the membership level.
However, in June last year, it was difficult for users to withdraw funds on the platform. After that, the official website was shut down and the team members disappeared. After that, these encrypted currencies stored in the electronic wallets managed by PlusToken will be transferred to other electronic wallets in batches for many months and cashed out in various exchanges. According to a research report by the research company OXT, as of March this year, there may still be more than 61,000 bitcoins that have not been successfully sold and transferred.
PlusToken was very high-profile in the early stages of project development, claiming to be Yu’ebao (an investment platform under Alipay) in the cryptocurrency field, and opening multiple websites and online communities to promote it. The platform once sponsored the Jeju Technology Conference of the WBF World Blockchain Conference. After its scam was exposed, WBF immediately drew the line and apologized for it, saying that it was not rigorous enough in approving partners.