Cryptocurrency wallet PlusToken has allegedly vanished with $3 billion worth users’ crypto deposits. The exit scam is considered the largest Ponzi scheme in the crypto space.

PlusToken users took to Twitter the withdrawal failure issue

PlusToken users report on various social media that they have failed to withdraw cryptocurrencies from PlusToken wallet since June 27. Additionally, the price of its platform token PlusCoin (PLUS) has been staying at $139.237 without any fluctuations since the night of June 29. Investors thus suspect the team has run away with their money. Victims estimate PlusToken’s fraudulent revenue at 20 billion Chinese yuan (roughly U.S.$3 billion), while the actual amount may be far more than their estimate.

A traceable PlusToken ether address shows that it holds more than 781,000 ETH (over $234 million). Apart from ETH, the wallet also enables major crypto storage including Bitcoin, Bitcoin Cash, Litecoin, XRP, Doge and Dash.

Launched in 2018, the PlusToken Wallet, presenting itself as a decentralized and international crypto project supported by a South Korean team, is primarily promoted across Asia like China, Japan, South Korea, Russia, Myanmar, Vietnam and a few European countries including Germany and United Kingdom. The company’s website identifies a co-founder as “Mr. Leo”, while little information about Leo is provided. Its website reads that its technology is supported by “Korea team’s original Samsung technology core and was developed by the research and development lab in Seoul South Korea”, correlated information, however, shows that the wallet is actually developed by a Chinese company based in Jiaxing Zhejiang.

A company, which is not openly upfront about who is running or owns it, would remind investors to associate it with MLM (Multi-level marketing) scams. While most investors falling into the trap seemed to be blinded by its promised high ROI (monthly 10%-30%) and commissions by pulling more investors in. Earlier this year, the company set an ambitious goal that the number of its users would break 10 million in 2019, and earlier this month, the company claimed to have already had over 3 million registered users.

This March, police in central China’s Hunan province has conducted an investigation into the PlusToken pyramid scam and busted the local MLM gangs. The company’s head in China, Chen Bo, going by the pseudonym of Chen Zihan, has been at large on the wanted list of the country since then.

On June 29, a Chinese national named Chen Bo, together with other five Chinese men, has reportedly been arrested by Vanuatu police following Chinese complaints they were operating an internet scam from the Pacific island. Though the authority has not revealed more details about the scam the accused are involved in, the six persons are believed to be key members of PlusToken founding team.

Earlier this month, a similar Chinese crypto wallet TokenStore has vanished, taking more than 2,100 users’ crypto deposits with it. Investors should beware of shitcoins and suspicious lending companies promising exorbitant return/interest rate.