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The Yancheng Procuratorate of Jiangsu Province, China completed the first-instance sentence on PlusToken. 16 defendants were sentenced to two to eleven years in prison for organizing and leading pyramid schemes. The stolen money and goods involved in the case were turned over to the state treasury, which also symbolized the world’s largest cryptocurrency. The fund is finally settled.
According to the second-instance criminal ruling of the Procuratorate of Yancheng Development District, Jiangsu Province, the original court held that PlusToken’s stolen goods, stolen money, fruits (extra proceeds from stolen money), and criminal tools involved in the case will be “confiscated” and turned over to the state treasury. It is estimated that the national treasury will receive 27.5 billion yuan.
Under the packaging of suspects surnamed Chen and others, PlusToken has been portrayed as a multinational company. According to regulations, only online referrals can become members. The first step is to pay at least $500 in Bitcoin (BTC) and Ether (ETH). Wait, and then get the platform currency Plus for the Ina payment, you can receive 6-18% of the static income every month.
PlusToken also provides another kind of dynamic income, which is divided into two categories; “Direct link income” is to receive 100% of the static income of the first level of offline, and “indirect link income” is to receive the second to the tenth level 10 % Of static income. In addition, in order to encourage downline expansion, Plustoken divides members into 5 levels, and can receive “executive commission” rewards based on the number of downlines and investment funds.
The police pointed out that PlusToken has absorbed more than 9.48 million bitcoins, ethers and other cryptocurrencies within a year, which is equivalent to a total value of more than 50 billion yuan; just like a typical Ponzi scheme, most of the illegal funds will be taken away As a reward for “pull down the line”, another part of it was realized for Chen and others to spend.
It is reported that the stolen money seized by the public security organs includes 194,775 Bitcoin (BTC), 830,083 Ethereum (ETH), 1.4 million Litecoin (LTC), 27.6 million EOS, 74,167 DASH, and 6 billion. Dogecoins (DOGE), about 80,000 Bitcoin Cash (BCH), and 213,724 USDT.
At current prices, it is approximately US$4.2 billion (27.5 billion yuan).
At present, this batch of cryptocurrencies is entrusted to “Beijing Zhifan Technology Co., Ltd.” to be sold and realized in accordance with the law, and then will be turned over to the state treasury. The company is a blockchain big data service company that focuses on providing blockchain data analysis solutions using artificial intelligence and big data analysis technology.
When will it be realized, will it hit the market?
Due to the huge value of PlusToken’s stolen money, many investors are worried that if Zhifan Technology, which is hosting the stolen money, sells in the market, it will cause panic and cause the market to fall.
From a practical point of view, unlike criminals who have selling pressure, the stolen money should be mostly “auction”, that is, the OTC model, and the price should be cheaper than the current market price, otherwise no one will buy it at all, so it will affect the market price , May not be big.
In addition, according to CoinMarketCap data, the current total market value of cryptocurrencies is about 510 billion U.S. dollars, and the daily trading volume is 176.5 billion U.S. dollars. Although the stolen money of PlusToken is huge, it causes limited market fluctuations.
Remember the lesson of PlusToken
PlusToken was rumored to crash in June (2019). Like all funds, the victim never believed, rebutted, and finally accepted it. As the saying goes, there is nothing new under the sun, PlusToken’s fraud model is actually no different from other frauds.
Plustoken exchange claims to be able to move bricks intelligently. Users can deposit cryptocurrencies in the exchange, as long as they set the smart dog to move bricks, they can get 9% to 18% of the profit every month, and it is said that there is no lock-up. However, the withdrawal fee for cryptocurrencies deposited in the exchange is 5% for the first 28 days, and 1% for the subsequent days.
The high profits entice users to use the smart dog moving brick service. In addition to setting high profits, it also introduced a layered rebate mechanism.
This seems to be the same as all rat clubs. PlusToken uses the back fund to make up the front fund and distributes the funds of the latecomers to investors who enter the market earlier for interest. In theory, as long as there are no newcomers behind, the game is over. .
Will the mouse in front make money? Maybe or not.
The reason is that this kind of capital market is just taking advantage of the weakness of human greed, even those who are advanced in the market will once again put profits on the exchange to earn interest. The reason for this is that “greedy people” will choose to play this game.
Indeed, there are various opportunities for encrypted financial derivatives, but at the same time, investors are also required to prepare beforehand and fully understand the risks. Otherwise, they will only be on the verge of the information gap.