Chinese authorities charge six people linked with the massive crypto Ponzi scheme PlusToken – a report by Saumil Kohli.

Chinese police have prosecuted six individuals associated with the multi-billion dollar PlusToken Ponzi scheme. The defendants were suspected of organizing and leading criminal pyramid schemes.

Chinese authorities have charged six of the 109 individuals recently arrested in connection with the $5.8 billion crypto Ponzi PlusToken. Prosecutors charged six defendants named Chen Shaofeng, Luu Jianghua, Lu Jianghua, Lu Qinghai, Jin Xinghai, Wang Yin, and Zhang Qin in Xiangshui County and Yancheng City on September 7. The authorities said they were “suspected in organizing and leading criminal pyramid schemes.” Crypto scams around the world have increased this year amid the ongoing pandemic. 


Chinese authorities arrested 109 people in connection with the PlusToken scam.  

Chinese authorities arrested 109 people in connection with the Ponzi Plus Token scam in July, including 27 persons believed to be the scam’s executives along with 82 “key” promoters. The accused ringleader of the scheme was also arrested in May, while a further six suspects were extradited to China from Vanuatu in July 2019. PlusToken published its whitepaper in February 2018, claiming to be a South Korean-based crypto exchange offering interest-bearing accounts generating returns of between 10% and 30% per month in the form of its native token ‘PLUS.’ The scam took in more than 200,000 Bitcoins, 789,000 Ether, and 26 million Eos from approximately $3 million unsuspecting investors by May 30, 2019. 


Crypto scams continue to rise amid the ongoing pandemic. 

Cryptocurrency-related scams around the world have increased amid the ongoing global pandemic. Earlier this year, the US Federal Bureau of Investigation issued a warning saying scammers might be looking to unleash a surge in crypto-related scams. Several countries also reported a surge in cryptocurrency scams that included a spike in ransomware attacks, Ponzi schemes, and other different types of scams involving crypto. As the crypto industry continues to gain mainstream exposure, the crimes related to crypto have also been surging, reported Saumil Kohli. Scammers are now tailoring their pitch according to the situation and luring in victims, who eventually lose their investments. 

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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