This is the major seize since the Chinese police started to crackdown the involved in the Billionaire scam, PlusToken, which caused victims to lose more than $7.6B in actual prices on the assets they invested in this scheme. The law enforcement team was successful in their efforts to arrest and send the involved to court, where they were able to seize more than $4.2B in funds stolen from victims which, now will be used to fill the Chinese national treasury.
The decision to seize the assets was released by a Chinese court, after the crackdown conducted by the police arrested more than 15 people involved with the scheme, which is one of the biggest scams in the crypto space together with Onecoin Ponzi scheme they stolen billions from investors. The difference between this two major scams is that Onecoin Ponzi acted in a global scale causing victims all over the planet while PlusToken acted more on China mainland and in certain Asian and western countries stealing money from creditors.
The $4.2 billion seized by the Chinese police are distributed in:
A total of 194,775 BTC
833,083 ETH
1.4 million LTC
27.6 million EOS
74,167 DASH
487 million XRP
6 billion DOGE
79,581 BCH, and 213,724 USDT .
This assets were seized from seven individual linked with the PlusToken Ponzi scheme on the trial conducted in November 19,2020 and made public on Thursday, Nov. 26, in a total worth of $4.2B.
PlusToken Ponzi scheme started their business in 2018 where they claimed that the business was focused in crypto-arbitrage and from that time until it get uncovered that was in fact a Ponzi scheme have on their possession more than $7.6 billion in investors assets, many of them from China mainland, below are the numbers from their acquisition during the time the scheme was active:
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- in total worth more than $7.6 billion at the time.
The Ponzi scheme lured more than 2 million people and made them lose more than $7.6B, making the Ponzi or pyramid scheme to be one of the biggest on the crypto space.Interesting to note is that all of the seized assets will be allocated to the Chinese national treasury, more because trading of decentralized assets in Chinese mainland are banned, leaving the investors with no way to dispute the decision, which is curious assuming that the government banned any crypto business activity on their territory but assumes this seized asset as national treasury! Also to note that have not been declared about the "processing" of the referred seized assets and which method will be used.
With the seized assets China hold 1% of the total supply in circulation of Bitcoin and if they decide to hold it, may become the first known government with a big participation on the market share of Bitcoin, those 100K plus Bitcoin in their custody in time can become more than what worth today.
The mastermind behind the PlusToken Ponzi scheme lured more than 2 million people, stealing more than $7 billion, the pyramid scheme is one of the largest ones in the crypto sphere but the good thing is that with the seizure the assets could be recovered, unfortunately the victims won't be able to receive their money because in China trading of this kind of assets is forbidden, only the government will profit from it with more than $4 billions to get in their vaults.
PlusToken case by Wolfie Zhao on Scribd
Unfortunately not all Ponzi schemes could be tracked and cracked down, causing several victims to lose their hard earned money but in days like this at least could be said that "justice was served" and the criminals arrested. In fact the involved in the PlusToken Ponzi will face from 2-11 years in jail and fines from $100,000 to $1M from their role on the project.
It's important to always before investing in any business to check and research to not fall in traps, schemes that can lead to lose money to criminals. Bear in mind that the same way you dig to earn money the criminals also do the same, the latest techniques to lure and steal from people this guys know them well. They invest money and time to research how to grab money from innocent people, it's urgent and mandatory that anyone DYOR (do your own research) before investing in any kind of business.
Don't fall on traps...
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Have a wonderful weekend 🍻.
This is so much wrong. Why would they do it?? Everyone is just so much greedy you know