- PlusToken, one of the ponzi schemes in the crypto world was charged with fraud in China and the chinese authorities had arrested the perpetrators behind it
- According to the reports, the Chinese lawmakers had blocked over $4billions digital currency
- As per the order given by the court, the funds will be taken over by China
PlusToken became very popular in 2019 only to see its doom when the ponzi scam came to limelight. The scam was for $3billion, which was the whopping amount and probably one of the largest amounts that had been taken by the investors. The investors were duped for the bigger amount as the company made them believe in their scheme and showed them as a South Korean digital currency wallet and exchange. The scheme had lured investors to make them rich in a few days.
Jiangsu Yancheng Intermediate People’s Court had reported that the Chinese court had given authority to the police to block $4.2 billion digital currencies. The total number of funds in varied digital currencies are 194,775 BTC, 1.4million LTC, 833,083 ETH, 79,581 BCH, 27.6 million EOS, 74,167 DASH, 6 billion DOGE, 487 million XRP and 213,724 USDT.
The lawmakers had recovered the funds from PlusToken and had now seized under its belt to use it for the national treasury of China. On the other hand, the court didn’t revealed how the authorities will be using the seized currency or will they be selling it later. The court also did not discussed in its report whether they would be paying the money to the investors who had lost their hard earned earnings in the scheme.
The ruling on PlusToken was made on September 22 but the ruling had not been made public as many defaulters had filed for an appeal. However, the appeal was dismissed by the Jiangsu province later on November 19. It has also been revealed during the interrogation by the authorities that the perpetrators had spent more than $19 million to purchase luxury cars and more than 20 real estate properties.
According to the reports the police had arrested 109 members of the scam. The scammers had used digital currency and privacy wallets to duped the innocent investors. The report was made into two parts from OXT research. Among the perpetrators there were 6 Chinese nationals who were arrested in Vanuatu and were returned to China for further questioning.