Crypto Wallet PlusToken Pulls off Alleged Exit Scam

Withdrawals on PlusToken began faltering since June 27, with allegedly technical reasons cited as the reason for disabling.

PlusToken, a South Korean-based crypto wallet, allegedly pulled off an exit scam, disappearing with users’ funds that are estimated at over $3 billion worth of crypto deposits. Yet, the firm has not wiped its website, Twitter account, and other social media accounts while claiming some technical issues.

According to some anxious users, withdrawals on PlusToken began faltering since June 27, with allegedly technical reasons cited as the reason for their temporary disabling. While people were already furious to know about the mess, the lack of specifics about the HYIP crypto project only added fuel to the fire.

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All signs of a financial pyramid

As of May 30, PlusToken counted 3 million registered users, and earlier this month the wallet said it expects to sign over 10 million members before the end of 2019, just a few days prior to its disappearance.

These are clearly false claims as having a user base of millions means a high adoption rate while we never heard that any major or minor exchange trades Plus Token. Furthermore, other than its crypto wallets, the website doesn’t list any reliable products or services, and there is no serious industry outlets or news portals that ever covered the details of the token to give the offering any credit.

There are few details about the people behind this too-good-to-be-true project. The website identifies its co-founder as someone called “Mr. Leo,” and only presents a photo for this alleged owner wearing a baseball cap and standing behind a podium.

As this news propagated, the crypto community at large began to react. Groups on messaging platform Telegram and Facebook reveal users claiming to have typically lost up to $5,000. According to some unaudited tweets, multiple users based in China have reportedly filed complaints with Hunan province police, but solutions for those affected by the platform’s disappearance currently remain unclear.

Too good to be true

Users were questioning PlusToken’s legitimacy earlier this year, as seen in some forum threads requesting more information on the decentralized wallet, which appears to be primarily promoted across Asia.

PlusToken claims to offer a secure wallet with profit sharing concept. According to its website, the platform employs an automated arbitrage system that allows users by just depositing their money with the company to see their holdings double within eight months.

The fraudsters used both old-fashioned and new-technology tactics to swindle their victims in the scheme based on promises of high-profit allocations to the victims’ wallets. However, the alleged Ponzi scheme doesn’t provide information on investment strategies, and only promises investors with 6 to 18 percent monthly returns plus referral commission.

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