One of many ringleaders of Plus Token is now dealing with legal costs in China. Plus Token is likely one of the largest obvious scams within the cryptocurrency business’s historical past.
In line with native media, Zhou will face public prosecutors within the Court docket of Jianhu County, Yancheng Metropolis, Jiangsu Province. Because the native authorities solely equipped Zhou’s household identify, at press time we are able to’t verify precisely which Zhou this refers to.
Zhou reportedly publicized and promoted the PlusToken pockets App, a so-called crypto foreign money monetary administration utility, by way 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 folks into the pyramid rip-off.
A pyramid Ponzi scheme
In line 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 buyers they’ll pull in.
Native police mentioned that they acquired reviews 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 forth., 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 folks concerned with the PlusToken mission and extradited them again to mainland China final 12 months. It might be the most important crypto rip-off ever, with an estimated lack of round $2.9 billion.