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PlusToken: Chinese Police Seized US $ 4.2 Billion in a Cryptocurrency Ponzi Operations

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PlusToken: Chinese Police Seized US $ 4.2 Billion in Cryptocurrency from Ponzi's Operations

Chinese police seized more than $ 4.2 billion worth of crypto assets during the massive crackdown on the PlusToken Ponzi program, according to a new court ruling.

In the November 19 ruling published on Thursday, the Jiangsu Yancheng Intermediate People’s Court first detailed all of the crypto assets seized by Chinese police in connection with the PlusToken case.

In the process, Chinese law enforcement officers seized 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.

At today’s prices, the total value of these assets exceeds $ 4.2 billion.

As part of the ruling, the court said, “The seized digital currency will be handled following the law and its revenue and receipts will not go to the state treasury.”

However, the Yancheng Intermediate People’s Court has not disclosed how many of the seized encrypted assets have been or are being “disposed of” or any specific methods used.

PlusToken Criminal Charges Initially Ruled in September

The PlusToken criminal case was first judged on September 22nd by the Lower District Court in Yancheng, Jiangsu Province, China.

At the time, local media reported that the planners behind the encrypted Ponzi program defrauded 2 million people with more than 50 billion yuan (about $ 7.6 billion).

However, the details of the preliminary verdict were not made public as several convicted persons appealed the case to the Supreme Court.

The Yancheng Intermediate People’s Court dismissed the appeal in its final ruling on November 19, assisted the local court and provided details related to the criminal case.

Following the latest decision, PlusToken officially started operations in May 2018, promoting a non-existent crypto arbitrage trading platform. It promises users great spending every day but requires that they deposit at least $ 500 worth of crypto assets to participate.

The court said the pyramid plan drew 2.6 million members across 3,293 floors between April 6, 2018, and June 27, 2019.

During this period, more than 314,000 BTC, 117,450 BCH, 96023 DASH, 11 billion DOGE, 1.84 million LTC, 9 million Ethereum, 51 million EOS and 928 million XRP were added to the plan.

The court found that the crypto-assets were worth at least 14.8 billion yuan (about $ 2.2 billion) at the lowest price between May 1, 2018, and June 27, 2019. At today’s prices, their value will exceed $ 11 billion.

After the judgment, a total of 15 people have been convicted so far. They were sentenced to 2 to 11 years in prison and fined from $ 100,000 to $ 1 million.

In addition to the seized crypto assets, the court stated that one of the criminals had successfully laundered cryptocurrency worth more than 145 million yuan ($ 22 million) in yuan.

Police found traces of approximately $ 19 million in these money laundering agents used by criminals or their families to buy luxury cars, dozens of real estate in China, and insurance policies in Hong Kong.

The block previously reported that the Chinese police have stepped up efforts to combat internet-based criminal activity in recent years. Some of them may also use cryptocurrency to deceive victims or launder money.

As a result, as of this year, these incidents have created widespread bank account freeze issues among Chinese counter vendors and users who have suffered collateral damage.

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