- Scammers operating out of China
- Attracted roughly $2 billion worth of investment in
- $185 million already sold off
Bitcoin has been getting crushed as of late. There are multitudes of reasons why Bitcoin can’t find its own footing, but reports of big scams reported in China has been the currency’s latest setback. The idea of a massive Ponzi scheme won’t do any favors for the downward trend in this market.
Negative headlines
news of a massive Ponzi scheme in China has been one of the main factors for pushing Bitcoin underneath the $7000 handle.
While sentiment in the market has been negative, the news of a massive Ponzi scheme in China has been one of the main factors for pushing Bitcoin underneath the $7000 handle. There is a new group of scammers operating out of China under the name PlusToken that have attracted a billion dollars’ worth of investments. The Chinese authorities have shut this down and has already sold off $185 million of the input.
As with any other Ponzi scheme, the idea is that new money comes in and helps pay off older investors, giving the illusion of gains.
The Chinese have arrested at least six individuals a few months ago involved in this scam, and now there is an argument to be made that some of the downward pressure and large amounts of selling were actually done from this one fund. There are at least 20,000 Bitcoin still to be offloaded, so it’s very likely this will continue to pressure Bitcoin and will struggle in the long term.
