Around $3 billion in deposits have been lost in a scam by PlusToken, a cryptocurrency wallet provider and exchange. The Chinese police said that six suspects have already been arrested but the main operators are still free.
This could be the biggest cryptocurrency exit scam in the history of the crypto market. It was eventually discovered that PlusToken was nothing but a ponzi scheme. PlusToken was supposed to be a decentralized crypto project that was offering huge returns up to 30% in one month.
The company claimed to have around 3 million registered users and said they will break 10 million users in 2019.
PlusToken ran away with over 200,000 BTC and crypto users think this could have caused the recent Bitcoin dip below $10,000.
PlusToken wallets have been monitored y a crypto security firm called PeckShield and around 6,000 BTC were found moving in small batches.
It’s not clear if the authors of the scam actually sold all their coins already since it’s really hard to track all the transactions.
Some crypto users did warn others about PlusToken in 2018. The scam was exposed in detail but not everyone listened. Later on, in June of this year, a lot of investors reported that they weren’t able to withdraw funds but PlusToken simply said it was a hacker attack and they kept posting updated until August 5 claiming that PlusToken would go live again and withdrawals would work soon.