$ 500 million crypto pyramid suspects arrested in China

Police in Taiyuan, the capital of Shanxi province, arrested 72 suspects in connection with the activities.the alleged cryptocurrency pyramid CloudToken. They allegedly tricked more than 300 locals into 30 million yuan (almost $ 4.3 million), 8btc reports.

CloudToken works in the same waymulti-level marketing with high referral payouts, as the sensational PlusToken scam. The project positions itself as a cryptocurrency wallet that rewards users.

The Chinese-based scheme is actively promoted in other Asian countries, including Korea, Japan, Indonesia and Malaysia, as well as African countries.

Primitive Ventures managing partner Dovi Wang believes the scale of the proposed pyramid is comparable to PlusToken.

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An anonymous contributor told 8btc that he was promised a return of 6% to 10% per month on the amount of the investment. Funds were deposited in the utility tokens of the company, and bonus payments were also supposed in them.

&#171;At the same time, the person promising all these rewards has disappeared, and more than 800,000 members are wondering when and how they will get their initial investment back.&#187;

Damage is already estimated at more than $ 500 million, and this figure can grow.

Earlier, the police arrested the key organizers of the PlusToken pyramid, but the assets involved in it continue to move actively.

Chainalysis experts believe that people involved in PlusToken own 20,000 BTC, and these funds will continue to put pressure on the market.