Chinese police have arrested 27 main suspects alleged to be behind the massive crypto scam dubbed Plus Token. According to a report from the Chinese financial news outlet CLS, led by the Ministry of Public Security, the Chinese police arrested another 82 core members of the scheme. Plus Token, which operates like a typical pyramid scheme, said to have grown to have over 3,000 layers since last year and fleeced over 2 million people by using cryptocurrencies, including bitcoin as a funding channel.
Plus Token grew to have over 3,000 layers since last year.
The elaborate pyramid scheme dubbed Plus Token 3,000 layers since last year and fleeced over 2 million people by using cryptocurrencies, including bitcoin, as a funding channel. The total amount of crypto assets swindled from investors is approximately worth a whopping 40 billion yuan, or $5.7 billion. According to the report, the total amount of crypto assets swindled from investors is approximately worth a whopping 40 billion yuan, or $5.7 billion. This case marks the first time when the Chinese police cracked down on a major international Ponzi scheme using bitcoin as an exchange method.
Crypto scams continue to rise amid the pandemic.
Crypto 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 cryptocurrencies.
As the crypto industry continues to gain mainstream exposure, the crimes related to crypto have also seen a surge. Scammers are now tailoring their pitch according to the situation and luring in victims, who eventually lose their investments.