The first Bitcoin transnational network pyramid scheme case was cracked, with the amount involved exceeding 40 billion yuan

Recently, according to the deployment of the Ministry of Public Security, the public security organs filed a case to investigate the "Plus Token platform" online pyramid scheme case, and arrested all 27 major criminal suspects who had fled abroad and 82 core members of the case, completely destroying this large-scale transnational online pyramid scheme organization entrenched at home and abroad. This case is the first online pyramid scheme case cracked by the public security organs that uses Bitcoin and other digital currencies as the trading medium, involving more than 2 million participants, more than 3,000 levels of hierarchical relationships, and the total value of digital currencies involved in the case exceeds 40 billion yuan.
In early 2019, the public security organs in Yancheng, Jiangsu Province, immediately set up a special task force after discovering clues that Chen and others were suspected of using virtual currency trading platforms to organize and lead pyramid schemes. In June of the same year, under the coordination and organization of the Ministry of Public Security, the police of the special task force went to Vanuatu, Cambodia, Vietnam, Malaysia and other countries and regions to strengthen police law enforcement cooperation and successfully arrested 27 major criminal suspects hiding abroad. In March 2020, all 82 core members suspected of pyramid schemes were arrested.
After investigation, it was found that in May 2018, the criminal suspect Chen and others started to engage in Internet pyramid schemes by setting up the "Plus Token platform" and developing related applications. The platform uses blockchain technology as a gimmick, uses Bitcoin and other digital currencies as a trading medium, and promises high rebates under the guise of providing digital currency value-added services to attract the public to participate. Participants can obtain membership by recommending online and paying digital currencies worth more than US$500 as a "threshold fee". Members will receive the platform's self-created "Plus" coins according to the value of the digital currency paid, and form a hierarchical relationship between upper and lower lines according to the order of joining. Members are divided into 5 levels, and a corresponding number of "Plus" coins are issued as rewards and rebates according to the level.
In order to attract more people to participate, the criminal gang organized offline activities such as meetings, concerts, and travel to promote the platform from time to time, and even spent a lot of money to hold promotional conferences with thousands of people overseas. According to statistics, during the existence of the platform, more than 2 million members were developed, with more than 3,000 levels of hierarchical relationships, and millions of digital currencies such as Bitcoin and Ethereum were collected from members, with the amount involved reaching more than 40 billion yuan (calculated based on the market conditions at the time of the incident).
Relevant officials from the Ministry of Public Security said that in recent years, the means of pyramid schemes have been constantly updated, and their concealment and deceptiveness have continued to increase. The public security organs have always maintained a high-pressure crackdown on pyramid schemes and have continued to carry out source control and comprehensive governance in conjunction with relevant departments. At the same time, the public security organs remind the general public that participating in pyramid schemes will not only cause property losses, but may also be suspected of illegal crimes. Do not believe in the "investment" trap of high returns and high returns. (Internet)