China has reportedly arrested over 100 individuals under suspicion that they were involved in the PlusToken cryptocurrency fraud ring. The ring was based in South Korea and advertised as a high-yield investment opportunity for traders who dealt with cryptocurrencies. However, the PlusToken initiative actually created a massive Ponzi scheme in which members were encouraged to recruit others into the organization in exchange for a commission.
Last year, the operators of PlusToken carried out a sophisticated exit scam in which they made off with $3 billion in deposits stolen from up to four million users. The users suddenly released after the exit scam that they could no longer access their funds. News outlets report that the actual amount of stolen money could be twice as high, with estimates ranging from $3-6 million. The dissolution led to an international hunt for the perpetrators, and while many fled abroad, Chinese law enforcement as able to arrest 6 suspects. According to the Ministry of Public Security and the Chinese police, they have now arrested 109 individuals, including 27 “major criminal suspects” as well as 82 key members of the network pyramid scheme.
Read More: China arrests over 100 people suspected of involvement in PlusToken cryptocurrency scam
