New Chinese Crypto SCAM: WOTOKEN

By
Tokeneo
-
1 min reading

According to Chinese reports, another crypto scam has taken place this week, which is similar to the Plustoken platform. Over 700,000 users have been scammed by Dubbed WOTOKEN, and it has stolen a crypto worth over $1 billion.

crypto scam

New Chinese SCAM: WOTOKEN

According to the report, on 14 May, the trial in the court of Binhai Country, Yancheng City began, and there were 6 people on the jury of the defendants, who are said to have been involved in this project. The accusation concerns the organization and management of the so-called financial pyramid, and the defendants were also supposed to use false stories to promote platform, hide income and other crimes.

The Chinese authorities first learned about WOTOKEN in August 2018. The defendants had various responsibilities. Some of them were involved in organising, recruiting staff, setting up false platforms and organising advertising campaigns.

WOTOKEN did not perform any business activities, however, it was promoted as a smart cryptocurrency wallet, which generate profits without any user involvement.

Due to the type of MLM activity offering quick profits, as well as marketing promoting the project as a cryptocurrency wallet, this platform is compared to another scam, PlusToken, which also originated from China. Besides that, according to Dovey Wan, one of the defendants was also involved in PlusToken project.

According to a Chinese report, WOTOKEN functioned as a classic financial pyramid project from July 2018 to October 2019. What could draw users' attention and convince them that this is a scam is a surprisingly high hierarchy of 501 levels.

WOTOKEN's Trial$1.1 Billion of Cryptocurrencies Stolen

During the operation period , 715 249 people registered on the platform. WOTOKEN stolen 46 thousand bitcoins, more than 2 million ethereum, 292 thousand litecoins, 56 thousand bitcoin cash, 684 thousand EOS, and several other smaller cryptocurrencies.

Eventually, according to the report, the total stolen amount was almost $1.1 billion.

Due to the criminal record of some of the offenders, they may be sentenced to various sentences. They all received a fine, the amount of which was not disclosed, and for their crimes they can spend from 6 months to 11 years behind bars.

Due to the fact that the trial is very complex, after a 6 hour trial, the court suspended the meeting on 14 May and the case will be continued next week.

PlusToken was probably the main reason for the huge drop in the price of bitcoin in March 2020, when bitcoin fell to its lowest price levels for many years. On 12 March 2020, the first cryptocurrency noted a drop of over 50% to below $4,000 level.

Whether the new Chinese spam will have the same devastating effects as PlusToken will still be revealed.

Dear customer,

We use cookies to provide our services correctly and safely. Cookies are small text-based data sets that shall be saved on the device you are using in connection with the use of this instnat website. Cookies are created in order to ensure proper functioning of thes instant website. By clicking the button "I accept and go to the website", you implicitly agree to creation of the cookies on your computer and to deploy automatic tracking and data collection and processing on behalf of the Tokeneo TEO OU. Click the above-captioned button is also tantamount to accepting website's privacy policy. Closing the notification by means of "X" is unequivocally connected with your consent. If you do not agree to any of the above, please discontinue using our Website.

“Cookies” shall make an identification of the software used by you and to customization of this instant website to your needs. Cookies contain the name of the domain from which they origin, duration of period of their storage on your computer and an assigned value.

Third party cookies:
We also use third-party cookies for the following purposes:

  • creating statistics - helping to understand the way Users use the Website, which allows to improve its structure and content with use of the analytical tools
  • defining a user profile - in order to display custom-tailored content in advertising networks.

External entities that might be source of any third-party cookies on this instant Website are as follows:

Using a settings of your web browser or by using pre-set configuration tools available in our service you can independently and at any time change the settings concerning your use of the “cookies”, specifying the conditionsof their storage and how your device is creating and downloading them. These settings can be changed to block the automatic handling of cookies in the settings of your web browser or inform about their placement on your device each time.

Detailed information about the options related to use of “cookies” is available in the settings of your software (web browser).

Service privacy policy

This instant document lays out the principles of the Privacy Policy on the tokeneo.com/news/pl website (hereinafter referred to as the "Website" or "Service"). The administrator of the Website is TOKENEO TEO OÜ (an Estonian law limited liability company) with its registered offices in Tallinn (in the province of Harju Maakond), at 19-7K Maakri Street (in the district of Kesklinna Iinnaosa), 10-145 Tallinn, Estonia, registered on 21.12.2018 in the Estonian Business Register under number 14630242, using the EU VAT number: EE102149487.

The full document to read the Tokeneo privacy policy is available in this document.

Advanced settings can be changed in your browser.