Alleged Chinese cryptocurrency scam may have driven the price of bitcoin down

Alleged Chinese cryptocurrency scam may have driven the price of bitcoin down

 

The recent price drop in bitcoin may have been related to a sell-off following an alleged massive cryptocurrency scam that is claimed to have swindled up to $2.9 billion from investors according to some reports.

The scam in question is called “Plus Token” and is said to be a Ponzi scheme that primarily operated in China. Described on its website as a “new global revolution,” Plus Token fraudulently claimed that it could deliver wallet holders a return on investment between 8% and 16% per month after depositing a minimum of $500 in crypto assets.

According to CoinTelegraph, the company involved several Chinese nationals and even allegedly “Chinese police.” The company itself said in a post last on July 31 in simplified Chinese – simplified is notable as Taiwan, Macau and Hong Kong citizens use traditional Chinese characters, claimed that something had gone wrong and that they were trying to rectify the situation.

Putting the amount stolen at $3.5 billion not $2.9 billion – the figure varies according to different reports, Crytposlate claims that Plus Token may be liquidating its holdings and hence driving bitcoin’s price down while doing so, referencing venture capitalist Dovey Wan. If everybody can help RT this and @ the onchain analysis expert you know please do. This critical incident has been overlooked bu the western community and will need all hands on deck to chase the scammed fund and freeze it before it’s too late @cz_binance @jespow @APompliano https://t.co/toH9we2QW0 The amount the alleged scam company is liquidating […]