Altcoin News: A Crypto Wallet PlusToken Turned out to Be a Financial Pyramid Scam of $3 Billion

July 1, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The creators of cryptocurrency wallet PlusToken allegedly fled with the assets of its users' total cost of $3 billion. This is the biggest scam exit crypto financial pyramid in China to date, according to the portal 8btc.

Users of PlusToken in social networks report that they are unable to withdraw cryptocurrency from the wallet since June 27. The course of the PLUS platform’s own token is held at around $139,237 and does not change from June 29. Investors assume that the organizers of the scheme have disappeared with their assets, which are estimated at 20 billion yuan or $3 billion.

Wallet PlusToken was launched in 2018 and was positioned as a decentralized and international cryptocurrency project supported by a team from South Korea. The project moved mainly in Asian and European countries.

According to the information on the PlusToken website, the co-founder of the wallet is a certain Mr. Leo, but the information about him is almost not presented. Contrary to the claims of the creators insisting on connections with South Korea, the accompanying data suggests that the wallet was developed by the Chinese company Jiaxing Zhejiang, claims 8btc.

PlusToken has signs of a financial pyramid. Investors were offered payments from 6% to 19% per month and additional bonuses for attracting new members. Previously, the company reported that by the end of the year it intends to register 10 million users, while the declared number of participants was 3 million people.

In March, the Chinese police initiated an investigation into the PlusToken case and stopped the fraudulent scheme. The likely head of the Chinese division of the pyramid, Chen Bo, known under the pseudonym Chen Jiyan, has since been on the run. On June 29, he, along with five other Chinese citizens, was allegedly arrested for organizing a fraudulent scheme on the Internet. Although the authorities provide no details, it is assumed that the six detainees were key figures in PlusToken.

In June, the creators of the TokenStore crypto wallet likewise disappeared, assigning deposits to more than 2,100 users, adds 8btc.

Author: Marko Vidrih