PlusToken to be Suspected of $3B Scam - Media

PlusToken was launched in 2018 and the wallet was positioned as a decentralized solution and an “international cryptocurrency project,”
02 July 2019   2144

According to 8btc, the creators of the PlusToken wallet allegedly disappeared with $ 3 billion in user funds. The publication emphasizes that today it is the largest exit scam and Ponzi scheme in China.

Many users of social networks complain that they have been unable to withdraw funds for several days:

PlusToken Users
PlusToken Users

At the same time, since June 29, the course of the native token of the PlusCoin platform “hangs” at $ 139,237, absolutely not changing. According to investors, the project team disappeared with assets of 20 billion yuan (about $ 3 billion).

781,000 ETH is stored on one of Ethereum's PlusToken addresses (more than $ 220 million at the current exchange rate). In addition to the ether, the wallet allowed to store Bitcoin, Bitcoin Cash, Litecoin, XRP, Dogecoin and DASH.

PlusToken was launched in 2018. The wallet was positioned as a decentralized solution and an “international cryptocurrency project,” allegedly supported by a team from South Korea and promoted mainly in Asian countries such as China, Japan, Myanmar, Vietnam, as well as in the EU and Russia.

On the project website it is indicated that the co-founder of PlusToken is a certain Mr. Leo, however, almost no additional data about him. Also, some information indicates that the wallet was developed by one Chinese company based in Jiaxing (Zhejiang Province).

The company was characterized by clear signs of a financial pyramid. Thus, investors were offered a referral system and the opportunity to receive monthly funds from 6% to 19%.

Previously, the company set an ambitious goal - to increase in 2019 the user base to 10 million people. Last month, PlusToken reported 3 million registered users.

In March, police in the southern province of Hunan initiated an investigation into the Ponzi-scheme PlusToken. Since then, the head of the Chinese division, Chen Bo, with five other project-related citizens of the PRC, has been on the run.

Potentional Vulnerabilities Found in ETH 2.0

Least Authority have found potentional security issues in the network P2P interaction and block proposal system
26 March 2020   975

Technology security firm Least Authority, at the request of the Ethereum Foundation, conducted an audit of the Ethereum 2.0 specifications and identified several potential vulnerabilities at once.

Least Authority said that developers need to solve problems with vulnerabilities in the network layer of peer-to-peer (P2P) interaction, as well as in the block proposal system. At the same time, the auditor noted that the specifications are "very well thought out and competent."

However, at the moment there is no large ecosystem based on PoS and using sharding in the world, so it is impossible to accurately assess the prospects for system stability.
Also, information security experts emphasized that the specifications did not pay enough attention to the description of the P2P network level and the system of records about Ethereum nodes. Vulnerability risks are also observed in the block proposal system and the messaging system between nodes.

Experts said that in the blockchains running on PoS, the choice of a new block is simple and no one can predict who will get the new block. In PoS systems, it is the block proposal system that decides whose block will fall into the blockchain, and this leads to the risk of data leakage. To solve the problem, auditors suggested using the mechanism of "Single Secret Leader Election" (SSLE).

As for the peer-to-peer exchange system, there is a danger of spam. There is no centralized node in the system that would evaluate the actions of other nodes, so a “malicious" node can spam the entire network with various messages without any special punishment. The solution to this problem may be to use special protocols for exchanging messages between nodes.