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Chinese Police Seized $4.2B Worth of Crypto From PlusToken Ponzi

Chinese police have seized over $4.2 billion in crypto assets over the PlusToken Ponzi scheme as per The Block blog post.

The PlusToken, a South Korean crypto exchange, and wallet provider. Moreover, the Ponzi scheme first released its white in February 2018. It promised users attractive payouts capable of generating between 8% and 16% monthly returns with deposits of at least $500 worth of crypto.

The Block Director of Research Larry Cermak tweeted,

As Larry mentioned in the tweet, assets were seized by Chinese law enforcement from seven convicts during the crackdown. These assets, at today’s prices, are worth more than $4.2 billion in total.

[image lightbox=”1″ caption=”Values of Seized Crypto Assets’ Breakdown”]https://thenewscrypto.com/wp-content/uploads/2020/11/Values-of-Seized-Crypto-Assets-Breakdown.jpg[/image]

According to the local report, the police found that from May 2018 to June 2019, Chen, Ding, Peng, and others set up a “PlusToken” platform. And developed over 2 million members. Even during the lowest downturn in the price of crypto, the scheme is immensely lucrative.

The report added,

“In one year, this platform has absorbed more than 9.48 million cryptocurrencies such as Bitcoin and Ethereum from members, which is equivalent to a total value of more than 50 billion yuan based on market conditions at the time.”

The Yancheng Intermediate People’s Court ruling mentioned that 15 people have been convicted till now. These individuals are 2 to 11 years in jail, and fines ranging between $100,000 and $1 million.

 

The News Crypto Staff

The News Crypto is a group of crypto journalists writing about the latest happenings in the crypto and blockchain industry.

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