China Prosecuted Members Of The PlusToken Team: Report

As of recently, China prosecuted six members of the PlusTokens team from the infamous crypto scam and now they are facing legal action, a month after the authorities arrested 109 people related to the scam. In our latest cryptocurrency news, we are reading more about it.

The alleged scam ran for more than a year and gathered $6 billion. The move came after a month since the Chinese authorities made 109 arrests in connection to the scheme. China prosecuted six members so far. The people’s procuratorate of Xiangshui County in China started prosecuting members of the PluStoken scam according to the court filings published on Monday. Six key members Lu Qinghai, Chen Shaofeng, Liu Jianghua, Jin Xinghai, Wang Yin, and Zhang Qin are named in the filings under suspicion that they were organizing and leading the alleged pyramid scheme.

3/ The #PlusToken scam is alleged to have been ended by #Vanuatu Police on the 27th of June. According to reports in Chinese media on the 1st of July that showed photos of some of the suspects arrested in Vanuatu & the alleged ring leader in China who was reported to be at large. pic.twitter.com/9knaWlSzIa

— DLT Vanuatu (@DLT_Vanuatu) July 14, 2019

The operators of the now-defunct Plustoken multi-level marketing company have allegedly spied on investors and promised them huge payouts if they invested in the token and urged others to invest in turn of small commissions. The Chinese authorities made 109 arrests that were connected to the Plustoken Scam and arrested 27 members of its “Core” team with 82 key promoters.

At its peak, PlusToken involved more than 2 million participants and had more than 3000 hierarchical relationships with the total value of the digital currencies involved surpassing 40 billion yuan or $5.8 billion according to the reports. PlusToken ran an alleged scheme under the cover of being just a crypto wallet and interest-bearing application from South Korea. It even promised more than 10 to 30 percent monthly gains on initial capital for users that are based on a generous referral program. And somehow It works until it fell apart.

PlusToken managed to attract about 3 million users in May 2019 but soon after that, the users discovered they were unable to access their funds on the platform which led them to seek police action. In July the same year, the police arrested six members of the team which were rumored to be key propagators of the scheme at the time. This open the opportunity for the questioning of the project legitimacy and started a manhunt for the creators that lasted more than a year.