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Chinese policemen with gun in hands. Source: Gaston Laborde / pixabay.com

More than 100 implicated in Plus Token scam arrested in China

China’s Ministry of Public Security arrested 109 people involved in the Plus Token ponzi scheme on Thursday. In the proceeding, 27 citizens classified as main suspects and another 82 members of the organization, which has been classified as a scam, were arrested.

According to local Chinese media, the unified police deployment made it possible to identify and arrest those involved, who are suspected of leading the ponzi scheme that captured more than $ 3 billion in cryptocurrencies . No details were provided on how the arrest of the 109 people was articulated or in which cities they were at the time of the capture.

Reports indicate that, with the arrest, the organization could cease operations. However, it should be mentioned that Plus Token is one of the most widespread scams in the cryptocurrency ecosystem.

Although there is no estimate on the number of people operating within the scheme, it is estimated that more than two million people would be related to it. The Chinese financial news agency CLS published that Plus Token is considered “as the first transnational mega pyramid network” that uses cryptocurrencies as a means of commercialization.

The incident occurs more than a year after the arrest of six Chinese nationals in Vanuatu, from where the organization allegedly operated. All six involved were extradited, but it is unknown what type of trial or sentence they served. With those of this Thursday there are already 115 people arrested in the Plus Token case.

The organization started operations more than two years ago with the promise of offering profitability levels to all those who use their wallet. to transfer fiat currencies and acquire the token. As usual in this type of scheme, the promoters guarantee the supposed profits with exchange or trading operations, mining of cryptocurrencies such as bitcoin and commissions for their referral system.

One point to note is that regardless of its modus operandi for raising new funds, Plus Token has been signaled in the past to interfere with the price of cryptocurrencies.

Crypto News reported in December last year that an investigation by the firm Chainalysis suggested that the PlusToken scammers were able to lower the bitcoin price after selling part of the cryptocurrencies captured with its scheme. The liquidation of the funds would have been carried out through independent OTC (over the counter) agents on different platforms, including Huobi.

Now with the massive arrest, new implications could emerge for its promoters, who have transferred some 800,000 ethers and another 45,000 bitcoins to their own accounts.