Ponzi scheme “Plus Token” selling off assets en masse
Plus Token, one of the largest cryptocurrency scams, is reportedly currently selling off its assets on a large scale. Some industry sources claim that the huge sell off has led to a recent fall in cryptocurrency prices. What is Plus Token? Marketed as a digital wallet that turns in a profit every day, the Chinese platform currently faces allegations that it is a huge scam. The project advertised that it would return a profit through its own cryptocurrency PLUS if users stored their bitcoin and ethereum in the wallet. The project reportedly acquired $2.9 billion worth of cryptocurrency. Instead of returning a profit of 0.3 percent through artificial intelligence-powered arbitrage trading as advertised, the project incorporated a Ponzi scheme, in which new users would provide funds to existing users. The project’s server is currently shutdown and users are unable to withdraw funds from their wallets. There are 3 million victims, with a sizeable number in Korea. Chinese authorities issued arrest warrants for six Plus Token employees for fraud on Aug. 17. Ahead of the warrant, Chinese authorities had already arrested some Plus Token workers in the island country of Vanuatu. Industry sources believe that those who were already arrested were not the actual organizers of Plus Token but simply helped out with the Ponzi scheme. Bitcoin price drop caused by Plus Token? After the arrests, funds started moving on a large scale from crytpocurrency wallets allegedly owned by Plus Token. There are claims that the crypto dumping by Plus Token since early August led bitcoin prices to drop. Plus Token’s bitcoin is stored in three accounts. The movement of 28,500 bitcoin tokens was spotted on Aug. 16. It is unclear whether the coins were moved into cryptocurrency exchanges. Ethereum stored in Huobi Plus Token’s ethereum tokens have been confirmed to have been relocated to exchanges. On Aug. 23, New York-based blockchain company Elementus reported that 50 percent of Plus Token’s ethereum that was moved ended up in Singapore-based exchange Huobi. Of the total 9.4 million ethereum tokens that were moved from a wallet allegedly owned by Plus Token, 4.6 million were moved into Huobi. The ethereum tokens were also moved to China and Korea-based exchanges. Chinese exchange ZB.com received 7.96 percent of the tokens, OKex got 3.42 percent and Korean exchange Upbit received 5.79 percent. Ethereum transaction information provider Etherscan placed a scam warning label on the wallet allegedly owned by Plus Token on Aug. 16. XRP also being moved On Aug. 24, blockchain security company PeckShield said Plus Token is also relocating XRP from its wallet. According to PeckShield, 484.5 million XRP ($130 million) that appears to be owned by Plus Token was moved. It did not confirm whether it was sold on exchanges. Other than bitcoin, ethereum and XRP, Plus Token also stored its assets in EOS. Movement of EOS has not yet been spotted.