Amidst a recession in the cryptocurrency markets, the apparent swathe of Bitcoin sell-offs from a $3 billion Chinese Ponzi scheme could be to blame.
The founding partner of blockchain-based investment company Primitive Ventures, Dovey Wan on 14th August called attention to the ongoing mass sells off from the fraud Chinese investment scheme.
Wan said that PlusToken was created in 2018 and promised high investment returns at different re debate percentages to its four tiers of member—a classic Ponzi Scheme structure and by early 2019, the project claimed to have over 10 million members.
Wan attached all the evidence associated with PlusToken being fraudulent and called on exchanges and over the counter platform to blacklist them.
The Chinese police hunted down a member of the scheme two months ago who revealed that the investors were scammed of an enormous $3 billion.
Wan attached all the investigative data from the security audit firm Peckshield that reveals the money flow from PlisToken’s wallet as of early July the date when the sellers are thought to begun “Incessant sell-offs.”
Even if the arrest is made the cryptocurrency cannot reportedly be rolled back.
Chinese traders have claimed that an unknown address has in recent days been dumping 100 BTC nonstop on crypto exchange Binance, and Wan suspects it to be connected to the scheme.