Chinese authorities are prosecuting six individuals who are believed to be associated with PlusToken. The suspects are said to be the mastermind of the pyramiding scheme.
This crackdown started in 2019, with a massive arrest of over 109 persons. These members are said to lure their victims with high rewards, reaching over 10%-30% gains after a month.
Following the arrest, a local court in China has released a document accusing Zhang Qin, Liu Jianghua, Wang Yin, Chen Shaofeng, Jin Xinghai, and Lu Qinghai of serious crimes. These were formally charged by the prosecutor in Xiangshui County and Yancheng City on September 7.
The suspects were said to transfer the collected funds from one wallet to another. Over 6,000 separate wallet addresses have been used to divide up and move cryptocurrencies around the world.
In light of this scheme, Token God Co-Founder Alex Svanevik, reacted, saying that while the PlusToken members’ activity was “interesting”, the blockchain community can still track them.
This Plus Token ETH migration of funds is interesting.
So far they’ve used >5,000 addresses in order to obfuscate the transactions.
Thankfully this is blockchain, so we can track them 😎
— Alex Svanevik 🧭 (@ASvanevik) June 25, 2020
The crypto industry has also been facing a lot of issues regarding scammers and hackers. This has somehow been part of the industry since its advent in 2009. PlusToken is the latest crypto investment platform involved in high-figure crypto scams.
Despite the never-ending scams and hacking issues, the industry still manages to survive and stand strong. Today, the DeFi space has a total value locked (TVL) of $7.17 billion. This is one indication that the crypto market is still standing strong amid the FUD.
