The cryptocurrency industry has created massive opportunities for investors, but it has also opened the door for some of the biggest financial scams in history. One of the most shocking examples is PlusToken, a fraudulent crypto project that managed to steal billions from millions of investors.
This massive scam not only damaged investor trust but also strengthened the strict stance of the China government toward cryptocurrencies.
The Beginning of PlusToken
Launched in 2018, PlusToken was marketed as a “smart crypto wallet” that promised users extremely high profits.
The platform claimed that investors could earn 10% to 30% monthly returns through advanced strategies like:
Arbitrage trading
Crypto mining
Automated investment systems
The project was reportedly founded by Chen Bo, a Chinese national born in 1983.
However, behind the attractive promises, none of these operations were actually real.
How Millions Were Tricked
The scheme was cleverly designed to look legitimate and attract new investors.
The process was simple:
Download the PlusToken application
Deposit cryptocurrencies such as Bitcoin or Ethereum
Purchase the platform’s native token called PLUS
Watch your “profits” grow each month
Invite friends and earn higher rewards
The platform even created different ranking levels like “Big Boy” and “Great God”, encouraging users to recruit more investors.
At one point, the PLUS token reportedly reached $350 on small exchanges, making the project appear extremely successful.
Aggressive Marketing Strategy
To expand rapidly, the scammers used various marketing techniques:
Large WeChat communities running 24/7
Offline investment workshops
Supermarket billboards
Professional advertisements claiming global operations
They even claimed to have a headquarters in Vanuatu to appear more international and trustworthy.
As a result, more than 3 million investors across China, South Korea, and Japan joined the scheme.
The Shocking Scale of the Scam
The numbers behind the fraud were staggering.
Investigators discovered that PlusToken wallets had collected:
180,000 BTC
6.4 million ETH
111,000 USDT
The estimated value ranged between $2 billion and $3.3 billion, making it one of the largest crypto scams ever recorded.
Victims ranged from 2.6 million to 4 million people, many of whom were ordinary individuals hoping to earn stable returns.
When Everything Collapsed
In June 2019, the entire operation suddenly stopped.
Users found that withdrawals had been frozen.
The team initially claimed that the platform had been “hacked” and that funds were being moved for security.
Shortly afterward, the founders disappeared.
The app even displayed a shocking message during transactions:
“Sorry, we have run.”
It was a blunt admission that the money was gone.
The Global Manhunt
Authorities quickly launched an international investigation.
In June 2019, Chinese police arrested six key figures, including Chen Bo, in Vanuatu. They were later extradited back to China.
By 2020, law enforcement had captured:
27 masterminds
82 core members
Over 100 individuals linked to the operation
Some suspects were hiding in countries such as Cambodia, Vietnam, and Malaysia.
Attempts to Hide the Stolen Funds
The criminals attempted to hide billions in stolen crypto using various methods:
Crypto mixers like Wasabi Wallet
Complex peel-chain transactions
OTC brokers on Huobi
At one point, the group reportedly sold more than 25,000 BTC, creating heavy selling pressure that contributed to Bitcoin’s price decline in late 2019.
Court Verdict
In December 2020, the Yancheng Intermediate People's Court in Jiangsu officially ruled that PlusToken was a pyramid scheme.
The sentences included:
Prison terms ranging from 2 to 11 years
Fines of up to $900,000
The court estimated the total fraud at 14.8 billion yuan (around $2.25 billion).
What Happened to the Seized Crypto?
Authorities confiscated a massive amount of digital assets, including:
194,775 BTC
833,083 ETH
Millions in LTC, EOS, XRP, and DOGE
At the time, the assets were worth around $4.2 billion and were transferred to the Chinese national treasury.
Unfortunately, most victims received almost no compensation.
The Lesson for Crypto Investors
The PlusToken scandal is a powerful reminder of the risks in the crypto industry.
The project promised 10–30% guaranteed monthly returns, and millions believed it.
Everything looked real:
The app
The profits
The community
But in reality:
No real trading happened
No mining ever existed
New investors’ money simply paid earlier investors
Until the entire system collapsed.
Final Thoughts
If a crypto project promises guaranteed returns, it should immediately raise red flags.
In the world of cryptocurrency, there are no guaranteed profits.
Sometimes the “opportunity” isn’t alpha — it’s simply a trap waiting for the next investor.
“What do you think about this? Comment your prediction below!”
