Police Arrest 27 Alleged Masterminds Behind $5.7B Plus Token Crypto Scam

Chinese police have arrested 27 leaders and 82 others suspected of operating the Ponzi scheme.

By Wolfie Zhao

Jul 30, 2020 at 10:41 a.m. UTC

Updated Sep 14, 2021 at 9:38 a.m. UTC

china police — (chinahbzyg/Shutterstock)

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Chinese police have arrested all 27 primary suspects thought to be responsible for running the massive Plus Token Ponzi scheme.

Led by the Ministry of Public Security, China's top police force agency, investigators also arrested another 82 core members of the scheme, according to a report from Chinese financial news outlet CLS on Thursday.
The pyramid scheme is said to have grown to over 3,000 layers since last year and fleeced over 2 million people by using cryptocurrencies, including bitcoin, as a funding channel.
The total amount of crypto assets swindled from investors is approximately worth a whopping 40 billion yuan, or $5.7 billion, the report said.
The case marks the first time Chinese police have cracked down on a major international Ponzi scheme that used bitcoin as an exchange method.
Law enforcement started investigating last year and had arrested six members alleged to be connected to the scheme.
However, the 109 leaders and core members newly arrested had fled the country at the time. It's not clear in the report where they were apprehended.
The six arrested in 2019 were extradited to China from Vanuatu, where Plus Token was alleged to have operations.

Also read: FBI Report on Laundering by Private Funds Cites OneCoin Fraud in All but Name

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