PlusToken Scammer Implicated in China’s Second Ten-Figure Crypto Ponzi

Published at: May 16, 2020

The scam, Wotoken, took in roughly $1 billion worth of crypto at current prices from over 715,000 victims.

One of the scam’s core operators is purportedly linked to PlusToken — a multi-billion Ponzi that is believed to have impacted the price trajectory of Bitcoin (BTC) on numerous occasions throughout 2019.

China’s second ten-figure Ponzi busted

Earlier today, Chinese media outlet, Qianba, reported that a case surrounding “super large MLM network” Wotoken had opened for trial on May 14 in Yancheng City.

The scam claimed to generate returns for users through employing algorithmic trading bots, offering referral commissions to affiliates. However, as with most MLM scams, the advertised proprietary trading software did not exist.

In total, 715,249 registered users fell for the scam, resulting in Wotoken accumulating 46,000 BTC, over 2 million Ethereum (ETH), 292,000 Litecoin (LTC), 56,000 Bitcoin Cash (BCH), and 684,00 Eos (EOS) — worth nearly $1 billion at the time of the arrest.

Wotoken was active from July 2018 through October 2019.

Wotoken operator associated with PlusToken

Six defendants faced trial for operating Wotoken, including one individual with ties to the notorious PlusToken Ponzi.

All six defendants pleaded guilty, with the court recommending prison terms of between six months and 11 years.

Tags
Blockchain
China
Scams
Ponzi Scheme
Related Posts
Plus Token Leadership Faces Criminal Prosecution in China
One of the ringleaders of Plus Token is now facing criminal charges in China. Plus Token is one of the largest apparent scams in the cryptocurrency industry’s history. According to local media, Zhou will face public prosecutors in the Court of Jianhu County, Yancheng City, Jiangsu Province. As the local government only supplied Zhou’s family name, at press time we can’t confirm exactly which Zhou this refers to. Zhou reportedly publicized and promoted the PlusToken wallet App, a so-called crypto currency financial management application, through Wechat and other avenues over the internet. By registering four different accounts with SIM cards …
Blockchain / May 22, 2020
CFTC Files Lawsuit Against $11M Ponzi-Like Cryptocurrency Scam
The United States Commodity Futures Trading Commission (CFTC) has announced the filing of a civil enforcement action against Nevada-based Circle Society. Defendants guaranteed investors 300% return On Oct. 16, the CFTC announced that it was charging Circle Society and its owner, David Gilbert Saffron, with “fraudulent solicitation, misappropriation, and registration violations relating to an $11 million binary options scheme.” According to the charges, the defendants misappropriated at least $11 million worth of Bitcoin (BTC) and U.S. dollars from individuals in the United States to “trade off-exchange binary options on foreign currencies and cryptocurrency pairs, among other things.” CFTC Chairman Heath …
Blockchain / Oct. 16, 2019
Vanuatu Extradicts Six Chinese Citizens Allegedly Involved in Crypto Scheme
Vanuatu, a Pacific Island country, has extradited six Chinese citizens to the mainland, according to a report by Odaily Planet Daily on July 10. The suspects were reportedly arrested in the course of an ongoing investigation of the PlusToken cryptocurrency platform which, according to the Yancheng Public Security Bureau, is a pyramid scheme. As per the report, the Yancheng police in China have confirmed that they cooperated with local Vanuatu police to extradite six suspects associated with the PlusToken fund. The individuals were reportedly arrested by Vanuatu authorities at Chinese police’s request, and later released to China following negotiations. The …
Blockchain / July 10, 2019
PlusToken Effect: Alleged Asian Exit Scam to Blame for Market Decline?
In the last week of November, the saga of an alleged crypto Ponzi scheme that has been lingering for more than half a year took a new turn. A hobbyist blockchain researcher reported on Twitter that he’d tracked almost 200,000 BTC that had gone missing over the summer, when several million people invested in PlusToken — a South Korea-based exchange and a high-yield investment program — found themselves unable to withdraw their money. The researcher suggested that the embezzled funds have been gradually dumped on crypto exchanges, potentially suppressing Bitcoin market price. Here’s what is known about the monumental scheme …
China / Dec. 3, 2019
Fraudulent Transactions in Crypto, Explained
How can payment fraud be avoided? Introducing better verification measures can go a long way to protecting consumers. Amazon and eBay are often held up as good examples of how transactions should be handled in the wider economy. These sites often deliver impartial reviews based on the past activities of buyers and sellers, meaning it is easier for consumers to find someone reputable. Measures are also in place to protect both parties if a transaction doesn’t go to plan. A multitrader marketplace called Kuverit is aiming to bring this to the crypto and fiat world alike. The company claims it …
Blockchain / Oct. 22, 2019