One of many ringleaders of Plus Token is now dealing with prison costs in China. Plus Token is likely one of the largest obvious scams within the cryptocurrency business’s historical past.
In keeping with native media, Zhou will face public prosecutors within the Court docket of Jianhu County, Yancheng Metropolis, Jiangsu Province. Because the native authorities solely provided Zhou’s household identify, at press time we will’t verify precisely which Zhou this refers to.
Zhou reportedly publicized and promoted the PlusToken pockets App, a so-called crypto forex monetary administration utility, by means of Wechat and different avenues over the web.
By registering 4 totally different accounts with SIM playing cards within the pockets, he allegedly lured greater than 1.9 million individuals into the pyramid rip-off.
A pyramid Ponzi scheme
In keeping with native authorities, the PlusToken pockets disguises itself as a cryptocurrency monetary administration app, however permits criminals to recruit members by promising excessive returns baked on the quantity of different traders they’ll pull in.
Native police mentioned that they acquired stories from the general public concerning the rip-off as early as final 12 months, explaining:
“Within the identify of offering a cryptocurrency appreciation service, the platform falsely claims that it has the operate of mining cryptos, and requires members to pay sure worth of cryptocurrencies resembling Bitcoin, Ethereum, EOS, and so on., in order to acquire excessive static revenue.”
Different criminals concerned
As Cointelegraph reported beforehand, members of the Chinese language police touched down in Vanuatu and detained six individuals concerned with the PlusToken undertaking and extradited them again to mainland China final 12 months. It may very well be the largest crypto rip-off ever, with an estimated lack of round $2.9 billion.