Chinese authorities are planning to sell confiscated cryptocurrencies worth $4.2 billion in its crackdown against the Plus Token, a recent local court ruling revealed.
November 27, 2020 | AtoZ Markets – The Chinese authorities are selling the cryptocurrencies seized during the investigation of the PlusToken financial pyramid scheme in the amount of $4.2 billion. The Block writes about this with reference to the Yancheng court order.
China will sell PlusToken confiscated cryptocurrencies in accordance with the law
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 were seized by the Chinese law enforcement agencies.
“The confiscated digital currency will be sold in pursuant to laws and the proceeds and gains will be forfeited to the national treasury,” the decision says.
The court did not specify the possible methods for the implementation of the cryptocurrency.
Launched in spring 2018, the PlusToken pyramid scam operated under the guise of a cryptocurrency wallet. According to the prosecutor’s office, the key participants of PlusToken attracted investors with a monthly yield of 10-20% and a referral program. They managed to interest 3 million people.
In June 2019, users started complaining about problems with withdrawing funds.
Since its inception, the scheme has attracted 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. According to the court, the total value of these assets exceeds $11 billion.
At the end of July, Chinese law enforcement authorities arrested 27 main suspects behind the PlusToken ponzi scam along with 82 key members of the group. These persons were behind the massive PlusToken Ponzi scam that swindled $5.7 billion from investors.
In September, police prosecuted six of the PlusToken scam and were charged with organizing and running a fraudulent scheme.
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