One of many ringleaders of Plus Token is now dealing with prison prices in China. Plus Token is among the largest obvious scams within the cryptocurrency trade’s historical past.

In keeping with native media, Zhou will face public prosecutors within the Courtroom of Jianhu County, Yancheng Metropolis, Jiangsu Province. Because the native authorities solely provided Zhou’s household identify, at press time we will’t affirm precisely which Zhou this refers to.

Zhou reportedly publicized and promoted the PlusToken pockets App, a so-called crypto forex monetary administration utility, by Wechat and different avenues over the web.

By registering 4 totally different accounts with SIM playing cards within the pockets, he allegedly lured greater than 1.9 million folks into the pyramid rip-off.

A pyramid Ponzi scheme

In keeping with native authorities, the PlusToken pockets disguises itself as a cryptocurrency monetary administration app, however permits criminals to recruit members by promising excessive returns baked on the quantity of different buyers they will pull in.

Native police stated that they acquired studies from the general public concerning the rip-off as early as final yr, explaining:

“Within the identify of offering a cryptocurrency appreciation service, the platform falsely claims that it has the operate of mining cryptos, and requires members to pay sure worth of cryptocurrencies equivalent to Bitcoin, Ethereum, EOS, and so forth., in order to acquire excessive static revenue.”

Different criminals concerned

As Cointelegraph reported beforehand, members of the Chinese language police touched down in Vanuatu and detained six folks concerned with the PlusToken challenge and extradited them again to mainland China final yr. It might be the largest crypto rip-off ever, with an estimated lack of round $2.9 billion.

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