PlusToken Suspected Ponzi Moves $240M in Four Bitcoin Transactions

Over $240 million in proceeds from the alleged crypto scheme PlusToken have reportedly moved through four Bitcoin (BTC) transactions.Whale Alert — a Twitter account dedicated to reporting large cryptocurrency transactions — posted on Aug. 17 that four transactions totaling 22,923 BTC were likely the proceeds of PlusToken.The four transactions moved 6,000 BTC, 5,000 BTC, 7,000 BTC and 4,923 BTC. All the transactions took place on Aug. 17. The monitor admits that, while the transactions are likely associated with the purported scheme, they are unconfirmed. 

Largest reported exit scam

As Cointelegraph reported in an analysis of the biggest crypto heists, PlusToken could be the largest crypto exit scam, with an estimated loss of around $2.9 billion. PlusToken is said to have fraudulently claimed that it could deliver wallet holders a return on investment between 8% and 16% per month, after depositing $500 in crypto assets. 

Cryptocurrency and blockchain forensics company Ciphertrace states that the platform involves several Chinese nationals, the Chinese police and the company’s co-founders — a South Korean man operating under the alias of “Kim Jung Un” and a Russian known only as “Leo.”

Recently a United States District Court issued an emergency freeze to preserve $8 million in assets associated with several entities accused of a fraudulent and unregistered initial coin offering. 

New York resident Reginald Middleton and two entities under his management were initially accused by the U.S. Securities and Exchange Commission of raising approximately $14.8 million in a fraudulent ICO.