Plus Token Scam
In 2019, a new crypto-scam emerged called “PlusToken”. The fake project was presented to millions of investors and they were unfortunately able to siphon billions of dollars before fading away.
Unlike other smaller scams this one not only affected the direct investors but also investors of the entire cryptocurrency market. The people behind this misfortune took their payout in crypto and so, given the size of the capital they got their hands on, cashing out by selling on the market created massive selling pressure and caused Bitcoin to drop massively multiple times. By extension, this affected Altcoins as well and all of their investors.
In fact, in early March as Bitcoin started dropping from $10,000 with the narrative of “COVID-19” being assumed, evidence proposed suggested that it was i fact non-other than this Ponzi-scheme that caused the drop.
Today, July 30th, the Chinese media outlet “CLS” published that the Ministry of Public Security had investigated the scam and arrested 27 major criminal suspects and 82 key members of the case.
With over 40 Billion Yuan siphoned, perhaps this will ultimately help alleviate some of the excessive selling pressure experienced in the crypto-market as key figures may now be arrested and their identities uncovered.