A big feat for Chinese Authorities has happened recently when they have arrested a total of 27 significant suspects that were allegedly involved in the Plus Token, one of the considerable cryptocurrency schemes which are worth billion dollars.
The arrest was lead by the Ministry of Public Security
From news across various multiple Chinese media, the arrest was made by the country’s Ministry of Public Security.
This accomplishment was on top of the initial 82 core members of the Ponzi scheme who were later on seized by the Chinese law enforcement agency.
Tracing the Grand Ponzi Scheme
How does the scam go? It leads victims are lead believe that profits are merchandise of the product sales or other means. Unaware of these people, the source of the funds is the other investors. Scammers are adept at making money revolve as if it is a profitable company to invest in or get into.
The swindling of Plus Token has garnered an estimated amount of 40 billion Chinese yuan (around $5.7 billion) from the investors, based on the local news reported that surfaced.
Their current working model is offering 9% to 18% monthly returns on investment – with higher reserves giving you entries to more significant rewards. This type is alike with Bitconnect which ceased operation in January of 2018.
From the initial calculation, the Ponzi scheme was expected to have defrauded around $2.9 billion. Still, some experts say this is relatively small earnings and not much have been reported to date.
While this number of captivity was already significant, the majority of the perpetrators considered has either been hiding or had fled the country earlier (109 according to the police).
Chinee authorities arrested six people related to the Plus Token Ponzi scheme in 2019, but then told the media that the big heads were still freely doing what they want. These affiliates, however, were deported to China from Vanuatu, one of the alleged operational hubs of the scheme.
In March, Ergo, one of such companies, revealed that 13,000 Bitcoins, then valued around $10.2 million, stole in their crypto wallets, the largest in history.