A $2.9 billion cryptocurrency Ponzi scheme has collapsed after its operators got arrested trying to run the scam from a Pacific island.

Plus Token, a crypto investment app that promised massive returns, shut down in early July when Chinese police caught six Chinese nationals running the operation out of Vanuatu. The arrests came after thousands of investors suddenly couldn't withdraw their money starting June 27th.

Chen Bo, identified as the scheme's most prominent operator, was among those arrested. Chinese tech website 36KR confirmed the bust by connecting dots that Western media had initially missed. A weekend report from June 29th had mentioned arrests of Chinese nationals in Vanuatu for running an "internet scam," but didn't name the scheme. 36KR tied it directly to Plus Token when over four hundred affiliates began posting about blocked withdrawals in social media groups.

The financial damage is staggering. Sources close to Chinese police told 36KR that investors lost 20 billion yuan, or roughly $2.9 billion USD. Despite the arrests and the exodus of money, Plus Token's website and official social media accounts remained online as of publication, with promoters claiming a "hacker attack" had caused the problems rather than admitting the collapse.

The scheme operated as a cryptocurrency investment app dressed up in MLM language, promising returns that were mathematically impossible. When reviewed by independent analysts in October 2018, Plus Token's business model screamed fraud—it required constant recruitment of new investors to pay existing ones, the classic hallmark of a Ponzi scheme.

Plus Token wasn't operating alone. It was one of three cryptocurrency Ponzi schemes launched in association with the World Blockchain Forum, which coordinates these operations from Singapore. Cloud Token and a newer scheme called S Block continue running with essentially identical fraudulent structures. Singaporean authorities have yet to take action against World Blockchain Forum despite clear evidence of coordinated fraud across multiple platforms.

Industry observers expect Cloud Token and S Block will eventually implode like Plus Token did. When schemes built on pure recruitment collapse, they collapse fast.

🤖 Quick Answer

What was Plus Token and how did it operate?
Plus Token was a cryptocurrency investment application that offered users exceptionally high returns on their digital assets. The scheme operated as a Ponzi structure, relying on new investor funds to pay returns to earlier participants rather than generating legitimate profits through actual investments.

How much money did Plus Token defraud investors of?
Plus Token resulted in approximately $2.9 billion in losses for investors. The substantial sum was accumulated through the app's operations before authorities intervened and shut down the fraudulent scheme in early July.

Who were the operators and where were they arrested?
Six Chinese nationals, including Chen Bo identified as the scheme's most prominent operator, were arrested in Vanuatu, a Pacific island nation. Chinese police apprehended them while they were attempting to continue running the Ponzi operation from that offshore location.

When did the Plus Token scheme collapse?
Plus Token

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