According to local reports, a new crypto scam similar to PlusToken has been brought to trial. The crypto scam is estimated to have stolen over $1 billion in crypto assets. The trial began last week in the Court of Binhai Country, Yancheng City, against six defendants allegedly operating the WOTOKEN project. WOTOKEN has been accused of managing and organizing Multi-Level-Marketing (MLM) activities, covering up false stories, and the court blamed the company for providing misleading information and concealing incomes.
WOTOKEN operated without any actual business activities.
WOTOKEN first came into the eyes of Chinese authorities back in August 2018. All defendants in this major crypto scam had different roles within the organization, including recruiting technical personnel and setting up the fraudulent platforms to create online and offline attractive promo campaigns. According to reports, WOTOKEN operated without any actual business activities. However, the company claimed that it provides smart online wallets for cryptocurrencies that generate automatic profits for users.
Because of its massive MLM structure and its claims to produce quick profits as a crypto wallet, WOTOKEN is compared to another sizeable fraudulent scheme, PlusToken, which also came from China.
news all over Chinese media already https://t.co/uGA74CEzZA
here is the detailed court ruling https://t.co/e44t7anCxM
— Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) May 16, 2020
WOTOKEN stole $1 billion in cryptocurrencies.
The well-known industry commentator Dovey Wan tweeted that one “core criminal involved in WOTOKEN is formerly key scammer at PlusToken.” According to reports, WOTOKEN operated from July 2018 to October last year. It worked as a classic MLM scam, but it had a total of 501 hierarchical levels, which is very high. During that period, 715,249 people registered on this platform, and WOTOKEN allegedly stole 46,000 bitcoins, over 2 million ethers, 292,000 litecoins, 56,000 BCH, 684,000 EOS, and large quantities of several other less known cryptocurrencies. The report calculated that the money this fraudulent project rasied from its members equaled 7.769 billion yuan (nearly $1.1b). The jail time for defendants could range from six months to eleven years if found guilty.