China's Ministry of Public Security Cracked Down on Its First Crypto Scam Involving $5.7 Billion
[ChainDD report] July 31 (ChainDD) According to China's Ministry of Public Security, Chinese police recently started the investigation of "Plus Token Ponzi scheme", and successfully arrested 27 major suspects and 82 core members who had fled the country. So far, the gigantic international Ponzi organization had been completely destroyed.
This pyramid sales case marks the first time Chinese police has cracked down on a major international online scheme with cryptocurrencies such as bitcoin as the medium of exchange.
Besides, the scheme involved more than 2 million participants with over 3000 hierarchical layers, swindling a jaw dropping 40 billion RMB (about $5.7 billion) worth of cryptocurrencies.
According to the police, in May 2018, Chen and the team started the Ponzi scheme through the development of Plus Token and related applications. Using blockchain technology as a gimmick and cryptocurrency as a transaction method, Plus Token had attracted participation by promising high returns.