Cryptocurrency Wallet PlusToken Accused Of Pulling Exit Scam With $3 Billion in Users’ Funds

PlusToken has been accused of running away with users’ funds that they were investing after being promised to receive between 6 percent and 18 percent per month and a referral commission. This is not the first time that there is a crypto firm that steals users’ funds.

  • PlusToken is accused of stealing $3 billion in users’ funds
  • This is not the first exit scam that affects the industry
  • Not Your Keys, Not Your Bitcoin

The South Korean-based cryptocurrency wallet PlusToken has allegedly conducted an exit scam, stealing users’ funds. According to a recent report released by FinanceMagnates, the funds stolen are valued at over $3 billion from individuals using the wallet.

PlusToken Exit Scam

There have been several exit scams in the industry during the last years. The last one seems to be related to PlusToken, a South Korean crypto wallet that stole more than $3 billion funds that crypto enthusiasts were storing. Nonetheless, the firm didn’t delete its Twitter account and other social media accounts.

Withdrawals on PlusToken started to be affected on June 27, when the firm explained that they were facing some technical issues. Some individuals were already getting nervous about this issue and how the firm didn’t provide any specific reason about it.

As Finance Magnates reports, PlusToken had 3 million registered users and had hope to scale to 10 million individuals by the end of this year. However, this was not possible and the firm disappeared a few days later.

It is worth mentioning that PlusToken only offered users a cryptocurrency wallet but had no other product or service. At the same time, there were no exchanges listing the virtual currency, which shows that the industry didn’t legitimize this digital asset.

One of the individuals that seem to be behind the project is called Mr. Leo but there is also no further information about what he does or who he really is.

There have been created different groups on social media networks such as Telegram or Facebook trying to gather as much information about the situation. There are some users that claim that they have even lost $5,000 that they had on these wallets or invested. In addition to it, some Chinese users have already filed complaints with Hunan Province police, but it might take a long time for them to have their funds back.

PlusToken was promoted as a secure wallet that had a “profit sharing concept.” The wallet was working through an automated arbitrage system that allowed users to place their funds with the company and double their funds in 8 months. Nonetheless, there has never been a financial report explaining how the wallet conducted its activities. They only promised investors a monthly return between 6 percent and 18 percent and a referral commission. This is a typical Ponzi scheme that the crypto market has experienced in the past.

A few days ago, we wrote at Bitcoin Exchange Guide that the cryptocurrency exchange Bitsane disappeared scamming 246,000 investors. The firm didn’t let users withdraw their funds and it closed its social media accounts. The firm claimed that they were being affected by some technical issues but many individuals lost their funds, including an investor that says he lost $150,000.

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Carl T
Carl T
Carl is a legend in cryptocurrency space for his long-storied experience, history and insights. He is a digital nomad who fell in love with bitcoin and its offspring for many years now and prides himself on delivering quality perspectives in the emerging world of crypto-assets and blockchain technology.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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