Recent reports from China revealed that the Jiangsu Yancheng Intermediate People’s Court released a detailed breakdown of all the cryptocurrencies confiscated during the PlusToken’s massive crackdown.
Recall that the Chinese law enforcement agents launched an operation to arrest members of the criminal organization. The police recorded massive progress in July this year when they arrested 27 core team members of the scheme and 82 junior employees.
During interrogations, a total of 194,775 bitcoin (BTC), 833,083 ether (ETH), 1.4 million litecoin (LTC), 27.6 million EOS, 74,167 DASH, 487 million XRP, 6 billion DOGE, 79,581 bitcoin cash (BCH), and 213,724 USDT were seized.
In its final judgment, the court said all seized assets’ gains would be processed and forfeited to the national treasury.
So far, a total of 15 people arrested have been sentenced to between two to 11 years jail term.
The court ruling also noted that one of the convicts had successfully laundered $22 million worth of cryptocurrencies into Chinese yuan, with large amounts spent acquiring cars and real estate, among others.
The PlusToken Saga
Launched in 2018, PlusToken was a Chinese-based cryptocurrency scheme that promised investors high returns when they purchase the platform’s native token, PLUS.
The PlusToken team convinced the public to invest $500 in cryptocurrencies in exchange for PLUS to get lucrative profit within a given period.
This enticing offer prompted more than 2.6 million people to invest over 50 billion yuan ($7.6 billion) worth of cryptocurrencies into the scheme.
Before investors could realize they were being scammed, a total of 314,000 BTC, 9 million ETH, 928 million XRP, 117,450 BCH, 96,023 DASH, 11 billion DOGE, 1.84 million LTC, and 51 million EOS had been carted away.
The PlusToken saga left a massive scar in the Chinese crypto industry. Reports this year reveal that law enforcement agents are still interrogating crypto-related firms to curb money laundering activities in the country.
Several crypto executives were detained and interrogated, including OKEx founder Xu Mingxing, arrested last month.
Mingxing’s arrest led to the suspension of withdrawal service on the platform since he was one of the exchange’s private key holders.
Mingxing later regained his freedom last week while the exchange resumed withdrawal service yesterday.
However, OKEx users did not seem happy with the firm’s move to halt withdrawals, as users transferred large amounts of funds out of the exchange moments after the service went live again.