|

PlusToken carries out alleged exit scam

  • 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. 

Author

Rajarshi Mitra

Rajarshi Mitra

Independent Analyst

Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.

More from Rajarshi Mitra
Share:

Editor's Picks

XRP slides as institutional and retail demand falters

Ripple is trading down for the third consecutive day on Thursday amid escalating volatility in the cyrptocurrency market. After peaking at $2.41 on Tuesday, its highest print since November 14 amid the early-year rally, XRP has quickly ran into aggressive profit-taking.

Zcash downside risks escalate as core development quits amid internal disagreements

Zcash (ZEC) is trading down as volatility reaps through the cryptocurrency market on Thursday. The privacy-focused token is down nearly 14%, marking the largest intraday loss since December 1.

Crypto Today: Bitcoin, Ethereum, XRP extend decline as ETF outflows pose headwinds

Bitcoin is trading around $90,000 at the time of writing on Thursday as volatility grips the broader cryptocurrency market. Altcoins, including Ethereum and Ripple, also face increasing selling pressure, which continues to trim early-year gains.

Bitcoin slips below $90,000 amid profit-taking, ETF outflows

Bitcoin (BTC) slips below $90,000 on Thursday after a failed rejection at a key resistance level earlier this week. Bearish sentiment is strengthening as institutional demand fades, with spot Bitcoin Exchange-Traded Funds (ETFs) recording outflows.

Orange Juice Newsletter – Smart insights by real people. Every day.

A free newsletter highlighting key market trends to help traders stay a step ahead. Daily insights on the most relevant trading topics, compiled by our experts in an easy-to-read format so you never miss an important move.

Bitcoin: Fed delivers, yet fails to impress BTC traders

Bitcoin (BTC) continues de trade within the recent consolidation phase, hovering around $92,000 at the time of writing on Friday, as investors digest the Federal Reserve’s (Fed) cautious December rate cut and its implications for risk assets.