Fun

Chinese Police Seize $4.2 Billion in Multiple Cryptocurrencies From Plustoken Ponzi Clampdown

News Feed - 2020-11-28 07:11:43

Chinese Police Seize $4.2 Billion in Multiple Cryptocurrencies From Plustoken Ponzi Clampdown


Chinese police have seized more than $4.2 billion worth of crypto assets in its clampdown against the Plustoken Ponzi scheme.


According to a court rulingmade public on Nov. 26, and shared by The Block, law enforcement confiscated a total of 194,775 bitcoin (BTC), 833,083 ether (ETH), 1.4 million litecoin (LTC), and 27.6 million EOS.


They also took 74,167 DASH, 487 million ripple (XRP), 6 billion DOGE, 79,581 bitcoin cash (BCH), and 213,724 tether (USDT).


The assets were seized from seven persons convicted during the police crackdown, says the court judgment. Altogether, the cryptocurrencies are valued at more than $4.2 billion, using prevailing market prices.


The Yancheng Intermediate People’s Court ruling said once the digital assets are processed as per existing national laws, they will be forfeited to the national treasury. However, it is not clear how exactly this process will be done.


In July, police in China arrested109 people linked with the Plustoken Ponzi scheme – 27 of whom were believed to be the alleged masterminds. Local media reported then that the racket had scammed $7.6 billion worth of crypto from over two million people.


The scheme touted itself as a crypto exchange and wallet provider, promising users who invested a minimum of $500 in bitcoin high daily payouts. The Yancheng Intermediate People’s Court said Plustoken operated officially between May 2018 and June 27, 2019, drawing in over 2.6 million members across 3,293 levels.


During this period, the pyramid scheme absorbed in excess of 314,000 BTC, 117,450 BCH, 96,023 DASH, 11 billion DOGE, 1.84 million LTC, 9 million ETH, 51 million EOS, and 928 million XRP.


The court said the assets were worth around 14.8 billion yuan or about $2.2 billion at the time of the absorption. Current valuations put the loot above $11 billion yuan. Plustoken used these funds to pay members to recruit new targets, while the scheme masterminds allegedly cashed out some for daily and personal spending.


The Ponzi collapsed in June 2019, citing “system maintenance” – a typical scam exit strategy. Chinese authorities quickly moved in, arresting dozens of the Plustoken key members.


According to the latest court ruling, a total of 15 people have been convicted so far and sentenced to between two to 11 years in prison with fines between $100,000 to $1 million.


What do you think about the Chinese police Plustoken digital assets seizure? Share your thoughts in the comments section below. $100 Million Liquidated on Defi Protocol Compound Following Oracle Exploit NEWS | 18 hours ago Spending Sats: A Look at This Year"s Bitcoin Black Friday Deals NEWS | 1 day ago Tags in this story Bitcoin seizure, China, Chinese Police, Plustoken, Ponzi Scheme, The Yancheng Intermediate People’s Court


Image Credits: Shutterstock, Pixabay, Wiki Commons Purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here. Show comments

News Feed

Twitter Files for Payment Business — Elon Musk Says Platform Could Offer Debit Cards, Money Market Accounts
Twitter Files for Payment Business — Elon Musk Says Platform Could Offer Debit Cards, Money Market Accounts Twitter has filed paperwork with the U.S. Financial Crimes Enforcement
Sweden’s ‘Lagom’ Response to Coronavirus: No Masks, Keep The Economy Going With a “No Limit” Printing Press
Sweden"s "Lagom" Response to Coronavirus: No Masks, Keep The Economy Going With a "No Limit" Printing Press Pundits globally are flabbergasted Swedes still go to cafés, to
4 times key players in crypto were accused of insider trading
Robert D. Knight3 hours ago4 times key players in crypto were accused of insider tradingThere have been some high-profile instances of insider trading at major exchanges that show a larger issue underneath. 481 Total vi
Savannah Fortis14 hours agoDecentralized sensors to combat noise pollution hit the blockchainA network of 35,000 smartphone sound sensors was deployed on the Peaq Network ecosystem to collect hyper-local noise pollution
Ezra Reguerra14 hours agoChinese city of Jinan accepts CBDC payments for bus ridesThe Chinese city of Jinan is pushing for CBDC adoption by implementing digital yuan payments across its entire bus network.3457 Total view
Fed Governor Says ‘Blockchain Is Totally Overrated,’ Claims Crypto Is ‘Just Electronic Gold’
Fed Governor Says "Blockchain Is Totally Overrated," Claims Crypto Is "Just Electronic Gold" The American economist and member of the Federal Reserve Board of Governors, Christophe
Ezra Reguerra13 hours agoLufthansa airline launches NFT loyalty program on PolygonAirline passengers can collect NFTs and then get rewards, such as flight upgrades or airport lounge access, after completing NFT sets.3902
$250 Trillion in Assets Looking for Ideal Store of Value: A Bull Case for Bitcoin
$250 Trillion in Assets Looking for Ideal Store of Value: A Bull Case for Bitcoin The CEO of Nasdaq-listed billion-dollar company Microstrategy has made a strong
BitYard Officially Partners With Mercuryo to Enhance Crypto Payment Solutions
BitYard Officially Partners With Mercuryo to Enhance Crypto Payment Solutions press release PRESS RELEASE.Mercuryo is an international fintech company based in London founded in 201
Mad Money’s Jim Cramer Offers Advice on Cryptocurrency Investing
Mad Money"s Jim Cramer Offers Advice on Cryptocurrency Investing The host of Mad Money, Jim Cramer, has some advice for cryptocurrency investors. “I would never discourage y
Stablecoins would help US keep up with China — Former House speaker
Brayden Lindrea4 hours agoStablecoins would help US keep up with China — Former House speakerThe need for the U.S. to implement dollar-backed stablecoins “couldn’t be timelier” as China continues to come up with
Rakesh Upadhyay5 hours agoPrice analysis 7/31: SPX, DXY, BTC, ETH, XRP, BNB, ADA, DOGE, SOL, LTCBitcoin’s record low volatility is also a sign that the next price breakout will be volatile, but everyone is guessing whi