PlusToken was a cryptocurrency wallet and investment scheme that operated primarily in China, South Korea, and other Asian markets from approximately 2018 to mid-2019. It promised users monthly returns of 10–30% on deposited cryptocurrencies, marketed through a multi-level referral structure. When the scheme collapsed in June 2019, investigators estimated approximately 3 million investors had deposited an estimated $2–4 billion worth of cryptocurrency — primarily Bitcoin, Ethereum, and EOS. The subsequent liquidation of stolen funds by the fraudsters had measurable downward effects on crypto markets in 2019–2020.
The Scheme
PlusToken launched as a “smart wallet” mobile application claiming to use automated arbitrage trading to generate returns. Key features:
- Promised returns: 6–18% monthly (annualized 100–500%)
- Referral structure: Users earned commissions for recruiting new members — classic pyramid mechanics
- Minimum deposit: ~0.1 BTC or equivalent in ETH, EOS, or LTC
- Fake trading claims: App displayed fabricated “arbitrage profits” and returns — no actual trading occurred
The scheme spread through WeChat groups, line apps, and community events in China, South Korea, Japan, and Southeast Asia, with local promoters taking referral cuts.
Collapse and Arrests
In June 2019, PlusToken began experiencing withdrawal delays. By July 2019, the scheme was widely identified as a Ponzi collapse. Chinese authorities arrested six individuals in Vanuatu (Pacific island nation) in June 2019 after coordinating with local law enforcement. Over subsequent months, more than 100 individuals connected to PlusToken were arrested in China.
The Chinese government conducted one of the largest crypto fraud prosecutions in history: in November 2020, a Chinese court sentenced 14 defendants to prison terms of 2–11 years. In total, more than 109 individuals faced criminal charges.
Stolen Assets
Blockchain analytics revealed the scale of holdings:
| Asset | Estimated Amount |
|---|---|
| Bitcoin (BTC) | ~200,000 BTC |
| Ethereum (ETH) | ~800,000 ETH |
| EOS | ~26 million EOS |
| LTC | ~1.4 million LTC |
| XRP | Significant holdings |
At peak prices, these holdings were worth approximately $4 billion+.
Market Impact of Liquidation
The PlusToken operators had been gradually moving and liquidating stolen assets through cryptocurrency mixers and exchanges. Analysts from Chainalysis, Dovey Wan, and other researchers identified the following:
- Transactions ran through mixers including Wasabi Wallet coinjoin transactions
- Large BTC sell orders traced to PlusToken wallets correlated with notable market downturns in late 2019 and early 2020
- Researchers estimated PlusToken-connected selling contributed to Bitcoin’s decline from ~$13,000 (June 2019) to ~$6,500 (December 2019)
This made PlusToken one of the few crypto scams whose liquidation had quantifiable price impact on the entire market.
Recovery of Funds
Chinese authorities seized a portion of the stolen assets. In 2021, the Chinese government auctioned off confiscated PLUS tokens, though recovery for individual victims remained minimal. The Bitcoin and Ethereum moved by the fraudsters before arrests largely could not be traced to recoverable wallets.
Legacy
PlusToken set a precedent for:
- Scale of Chinese regulatory response to crypto fraud
- On-chain forensics capabilities for tracing obfuscated funds
- Understanding how large-scale Ponzi liquidations affect spot markets
- Awareness of “too good to be true” yield products in crypto
Subsequent schemes like WoToken (estimated $1B+) used similar mechanics targeting the same user base.
Social Media Sentiment
PlusToken is primarily a historical CT reference — cited in ‘biggest crypto scams’ lists and on-chain forensics case studies. Dovey Wan’s original tracking threads are still shared for educational purposes. The market impact of PlusToken’s BTC liquidations (contributing to 2019 price suppression from ~$13K to $6.5K) is a recurring academic reference in crypto market structure research.
Last updated: 2026-04
Related Terms
Sources
- Chainalysis (2020). “The Biggest Scam of 2019: PlusToken’s $2 Billion Bitcoin Fraud.” Chainalysis Blog, February 2020.
- Chainalysis (2021). “Crypto Crime Report 2021: PlusToken’s Lasting Market Impact.” Chainalysis Annual Report.
- China Internet Finance Association (2019). “PlusToken Risk Warning and Investigation Update.” Official Advisory, July 2019.
- Wan, D. (2019). “PlusToken on-chain analysis thread.” Twitter/Dovey Wan (@doveywwan), July–December 2019.
- Kim, T. (2020). “WoToken and the Legacy of PlusToken: Serial Crypto Ponzi Schemes.” CoinDesk Research, January 2020.