The Plus Token Scam

Last Updated on 2 November 2023 by CryptoTips.eu

In every business, there are risks involved, especially in the cryptocurrency world. One of those risks include scams and Ponzi schemes. As the industry grows, so is the potential to lose your funds to scammers. Over time, Bitcoin related scams are on the rise. They include the infamous Bitconnect, OneCoin, and the Plus Token scam.

Apart from defrauding unsuspecting investors, cryptocurrency scams negatively affect the virtual currency industry. Consequently, potential customers are scared from getting involved. Also, it can lead to significant fluctuations in Bitcoin and other crypto prices when scammers attempt to liquidate the stolen assets. Let’s take a look at the Plus Token scam, a cryptocurrency Ponzi scheme that sends shivers down its investors’ spines.

The Genesis of Plus Token

Plus Token was a cryptocurrency Ponzi scheme that operated in China and Korea. Its take-down has been among the first large-scale international cases involving cryptocurrency scams that Chinese officials have brought down. The bait is always on the returns and Plus Token was not planning to shift it. The scam’s masterminds lured unsuspecting investors by offering massive returns on their investments.

For instance, for every investment made, it offered 9% to 18% monthly returns. Hence, an enormous investment would lead to higher returns. Notably, the scam was following the classic scam hard book by mainly depending on conferences to promote the dubious scheme. Eventually, investors lost nearly 40 billion Chinese Yuan, approximately $5.7 billion.

Moreover, its operations included hood-winking investors that it is a viable business. For instance, the Plus Token team claimed that the funds collected go towards designing products linked to cryptocurrencies, such as the Plus Token wallet and their exchange.

Also, by referring new members, investors could earn huge bonuses. The investors were grouped into four tiers depending on the amount invested and the number of referrals made. This prompted an investor to convince family members and friends to invest in the system.

The Arrest of the Players

After investigations by security officials in China in 2019, 109 suspects were nabbed. Twenty-seven were the prime suspects alleged to be controlling the scam while the rest 82 were the core supporters of the Plus Token scheme. Six of the associates got prosecuted in September 2020.

What spooked the doubts among Plus Token investors was the delay in honoring withdrawal requests. The issues started in June 2019, where investors could not receive funds even after 35 hours of submitting withdrawal applications.

Consequently, the leaders addressed the issue and explained that the delay was due to higher miner fees. They expounded that the sent transactions with one sat/byte led to long intervals on the Bitcoin blockchain.

But being a Ponzi scheme this was an attempt to calm their spirits and to convince investors to disregard any negative information about the scheme. Eventually, when funds began moving, the transactions displayed the message:

Sorry, we have run

This implied that’s no money for the investors since the scammer has vanished with the funds.

Latest Transactions in Plus Token

Despite the arrest of the key players, investors’ funds are still in the market. Reports show that there has been a creation of over 6,000 different wallet addresses. Thus, moving the cryptocurrencies around to confuse the researchers. Most of the funds ended up on cryptocurrency exchanges. And, as the fraudsters were trying to cash out, it steered the tumbling of Bitcoin’s price.

Unfortunately, most exchange transactions got done through mixers such as Wasabi Wallet. Since it utilizes the CoinJoin protocol, it’s hard to trace the funds’ path.

Luckily, not all investors lost everything. For convenience and to hoist the Plus Token scam as a legitimate offering, some money got paid to early investors. However, the transfers were not easy to confirm whether they were made to the investors or the scammers’ accounts.

It’s not yet over

Despite the arrest of Plus Token key players, screenshots were circulating on Chinese social media in April 2020. The screenshots showed that the Plus Token app version 3.0 beta is online. Later in May 2020, the Plus Token team released a statement that the app would go through compatibility synchronization, stopping all transaction processes. Also, it added that eligible users would get an incentive once the version is live.

Conclusion

Cryptocurrency scams will present themselves in different ways, from imposter websites to fake mobile apps. Also, they can send you scam emails asking you to invest or buy products using Bitcoin.

Be on the lookout and carry out in-depth research before making any cryptocurrency transactions. As much as governments and virtual currency exchanges are working to make it harder for scammers to either scam or move their illegally-gotten funds, you shouldn’t let your guard down.

One way to smell the likes of Plus Token and OneCoin from a mile is through the lucrative ROIs, conferences, and the promise of ‘great upcoming’ products.