Rajarshi Mitra
Independent Analyst
- PlusToken is claimed to have absconded with funds estimated over $3m worth of crypto deposits.
- The alleged Ponzi Scheme promised users high monthly returns(6-18%) on investment without revealing investment strategy.
A South Korean-based crypto wallet, PlusToken is facing an alleged exit scam situation. It is claimed to have disappeared with users' funds which is approximately estimated over $3 billion worth of crypto deposits. However, the digital presence of the company including its website, Twitter account and other social media accounts has not been wiped out, while claiming some technical glitches.
As per a few worried users, withdrawals on PlusToken started faltering since June 27, with alleged technical reasons used as a reason for their temporary dysfunctionality. In addition to the exit scam chaos, the lack of details or specifics regarding the HYIP crypto project has caused anger and irritation amongst the users. The alleged Ponzi scheme doesn’t provide any concrete information or investment strategies but only promises investors with 6 to 18 percent monthly returns plus referral commission.
Earlier this month, a few days before their disappearance, PlusToken said that it's expecting to have over 10 million members before the end of 2019 and the wallet also counted 3 million registered users as of May 30th. These numbers seem bloated as they have no concrete and credible evidence backing this claim. Notably, there are little-to-no details about the people behind this alleged scam. The website mentions a "Mr. Leo" as the co-founder and displays a photo of him wearing a baseball cap and standing behind a podium.
As this news started spreading, the crypto users and community started to react. Groups on messaging platforms such as Facebook and Telegram reveal users who claim to have lost up to $5,000. As per some unaccounted tweets, several users from China have filed complaints with Hunan province police, but the solutions for users who were actually affected by the disappearance of PlusToken seem to be currently unclear.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Solana price sustains recovery rally despite falling daily active addresses
Solana price shows strong bullish momentum, which has seen the Ethereum killer break out from a descending parallel channel. Strangely, the daily active addresses on-chain metric fails to mirror this optimism, which is unorthodox considering the two parameters conventionally to go hand in hand.
ImmutableX price rallies by 40% in 24 hours, but whale activity remains weak
ImmutableX price rise astonished the market as the altcoin led the crypto market rally on Tuesday. The altcoin hit a 45-day high and, managed to flip many of the resistance levels into support floors. The reason behind the rally is unknown, but the whales seem to be active once again.
US House Committee passes bill to prevent issuance of CBDC
The United States is a landmine of regulatory trouble for the crypto space, but the technology behind it was being pursued for adoption. However, the application of this technology is also being objected to by many, attempting to end things before they even begin.
Optimism price outlook as network sells 116 million OP tokens
Optimism network has revealed plans to start selling 116 million OP tokens in a private sale immediately. At current rates, these tokens are valued at approximately $162.4 million but the transfer is not expected to impact market price.
Bitcoin: BTC contemplates crash in September
Bitcoin price remains unfazed by the US CPI announcement on September 13 and continues to move in a range. The weekly chart, however, shows a potential short-term recovery rally that could set the stage for a steep correction.