“Plus Token” pulled an exit scam with taking away over $3 Billion dollars in Cryptocurrencies (Bitcoin, Ethereum, EOS and others). Little known outside of Asia, Plus token had a major following in Korea and China – especially among investors not familiar with cryptocurrencies. Plus token is a High Yield investment program which offered massive rewards on “investment” to unsuspecting victims in China and Korea. The scheme offered 9% to 18% monthly returns on investment – with larger investments getting more rewards. This type of is similar to other High Yield investment programs like “Bitconnect” which collapsed in January of 2018.
How did it Work?
Plus Token is a classic ponzi scheme. It would make large promises of high returns to new investors, asking them for investments of large sums of cryptocurrencies including Bitcoin, Ethereum, EOS and Litecoin. Investors were divided into 4 “tiers”, according to how much they invested and how many other referrals they can make.
How did it become so popular?
Plus Token relied heavily in conferences and meetups to promote the token. The following video is taken at a Plus token gathering
Payments stopped 30th of June 2019
Early signs of trouble in started surfacing in June of 2019 as users started reporting delays in fund withdraws. Some took to complain on Chinese social media site “Weibo” citing that they were unable to receive funds despite writing for 35 hours after submitting withdraw requests (Source Blocktempo).
Initially Plus token blamed on “higher miner fees” for the withdraw delays. They claimed the sent transactions with 1 sat /byte, leading to long delays on the Bitcoin Blockchain. Plus token supporters avidly as their followers to “believe” in the system and disregard the “false information”.
“Sorry We have run” – but not fast enough
As funds began moving, one of the transactions carried the know “Sorry, we have run” as a comment to the transaction. This really needs no explanation – organisers of the scam have initiated their exit strategy and fled the country.
Arrests and extradition back to China
Law enforcement were able to arrest 6 of the suspects involved with PLUS token in Vanatu on the 29th of June 2019. They were detained and extradited back to China to face trial. Seems like they didn’t do enough research when fleeing the country.
Laundering into exchanges
Luckily research is being down to track wallets known to be associated with Plus Token (8btc.com, @doveywan, @PeckShield). Work done by @PeckShield has shown funds moving from large wallets (~5000+ Bitcoin) to smaller wallets, and eventually into exchanges.
Known amounts Scammed – List sum of BTC from identified and tracked addresses. Reports have been circulating that up to ~1% of the entire Bitcoin supply is involved in the scam. Currently more wallets are being added to this list.
- 70000 BTC ($700,840,000 USD)
- 789511 ETH ($142,111,980 USD)
- 26299109 EOS ($92,046,881 USD)
Known Bitcoin Wallet addresses (Source 1):
- 1MFgcyJ7ZNSknbTBRaih6zWDE6V1A64tRY (1865 BTC)
- 3ETAVt2scYBFkBFksuNDk1i5tDLQ2c4zWR (4922 BTC)
- 3EYsru4LUcN258sENYPu5Py3S5WnqxEcnE (3657 BTC)
- 3HKs1g7u5a1uU4pC5HaNooYMbL1Lao4mv4 (3928 BTC)
- 3ESakThMrdVVrbhhcpf9spicyjCg1Uk8Jm (3289 BTC)
- 33LNws16Wfs12usWBNfa1MSX3YKY6Hdayf (3270 BTC)
- 3HwY536CxznDxMjiRCFkpx5ykwJbJMZY4w (1725 BTC)
- 35bCzX3RQEWdquqCPQkmdJdu2K4ut1roUZ (3676.86 BTC)
- 31owhyALzzPEqUFwRbU5yQR4wNhYEjCiE5 (749.66 BTC)
- 3PBN3MCpDcZKr7WdyY1ULq1NeGwLNjpkj7 (12000 BTC)
- 14bwh6gmvol5ntwbvxqjkjdtzv4y5ebtvm (95228 BTC)
- 33FKcwFhFBKWHh46Ksmxs3QBu8HV7h8QdF (37922 BTC)
Plus Token Sources and Referebces
Chinese Sources and News Coverage
Special thanks to Matthew Graham for providing the videos and research!
https://3kemao.com/archives/124864?from=singlemessage&isappinstalled=0 https://www.ccvalue.cn/article/3952.html?from=singlemessage https://mp.weixin.qq.com/s/EJLo-Rjjzz283FOCbzuLuA https://mp.weixin.qq.com/s/HQxl5gKd0105tUIsQ0TQPg https://mp.weixin.qq.com/s/rPtQAo0sf4P_LDM-8K0Z1g
Crypto Wallet Addresses
Chainnode Research: https://www.8btc.com/article/440193
Plus Token Wallet Addresses: http://gscaijing.com/archives/21291