When it comes to cryptocurrencies and scams, unfortunately the list is too big to count. In very few occasions however, the transactions by which the scams made their exit have been as large as the 4 transactions from the alleged PlusToken scam.
The recent large BTC transactions are likely from PlusToken, but we have not been able to confirm it yet.
— Whale Alert (@whale_alert) August 17, 2019
The first notice about the extremely large transactions came from Whale Alert – the twitter service account dedicated to following all the large or “whale” transactions involving cryptocurrencies. Last week, Whale Alert addressed the 4 transactions who totaled 22923 BTC and pointed out that they are most likely done by PlusToken.
The 4 transactions were reportedly 5000 BTC, 6000 BTC, 7000 BTC and 4923 BTC. All of them were completed on the 17th of August and were most likely associated with the PlusToken scam.
By all margins, it would appear that the PlusToken scam could be the biggest crypto exist scam so far. With the current bitcoin price, the estimated loss is set around $2.9 billion. If the scam is judged by the highest-recorded BTC price, it would reach nearly $6 billion in financial damage.
PlusToken made use of a very old, but highly effective seductive return of investment promise
PlusToken allegedly claimed that their return of investment would be between 8% and 16% per month. Of course, the minimal deposit was $500 in crypto and a lot of people got lured in by the unrealistic promises.
Ciphertrace is a crypto and blockchain forensics company. They have publicly stated that PlusToken had a large multinational organization behind it. The Chinese police were involved, as well as several Chinese citizens. Additionally, the company’s co-founders were a South Korean man who was unironically known only under the alias of “Kim Jung Un” and a Russian company known as “Leo”.
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