WoToken: Another “Record-Breaking” Chinese Crypto Ponzi Scheme has Emerged

Recent reports suggests that another “Record-Breaking” Chinese-based crypto ponzi scheme similar to PlusToken crypto ponzi scheme has emerged

Its coming again, another record breaking Chinese-based crypto Ponzi scheme called WoToken has emerged.

The perpetrator of this ponzi scheme, according to reports have defrauded unsuspecting investors up to a billion dollars’ worth of crypto.

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Recall that this similar incident occurred around 2019, where the perpetrators of the fraudulent PlusToken placed an immense pressure on the crypto market. 

This is part of the reasons why Ethereum, Bitcoin, and other digital assets all saw sharp decline from their mid-2019 highs.

Read Also: SEC Nigeria Makes a List of Ponzi Schemes Nigerians Should Avoid.

It now appears that another Chinese-based Ponzi scheme started operation since 2018 and 2019. Reports claim that the scheme had more than 715,000 registered users, drawing a total of 46,000 Bitcoin and over 2 million Ethereum.

Now should the same incident repeat itself again, then the leaders of this scheme will start offloading their crypto holdings onto the open market. This can actually place some significant downwards pressure on Bitcoin and many other cryptos.

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WOTOKEN Ponzi Scheme Collects Over $1 Billion Worth of Crypto From Investors

Dovey Wan – a founding partner at Primitive Crypto, explained in a recent tweet that another Ponzi scheme similar to PlusToken has also gained ground defrauding investors a massive amount of crypto.

According to Wan’s tweet, the scam was active from July of 2018 to October of 2019. A total of $1 billion had been stolen from investors. Wan also claims that one of the key perpetrators of PlusToken seems to be involved.

“WOW another mega-size crypto Ponzi WOTOKEN just second to PlusToken gets clamped down by Chinese police and by reading the court ruling material here are some eyes whopping data. TLDR: active July 2018 to October 2019, WoToken scammed total over **1 BILLION USD**”

Considering the massive amount of Bitcoin holdings under the possession of WoToken ringleaders, they can put a big pressure on the crypto market when they start selling their holdings.

Dovey Wan disclosed that they acquired over 46,000 Bitcoin (BTC) and 2 million Ethereum (ETH).

“Total registered users: 715,249: Total hierarchical levels: 501. Total scammed crypto: 46,000 Bitcoin – 2.039 million ETH – 292,000 Litecoin – 56,000 Bcash – 684,000 EOS. According to the price on the day police involved, total value is more than 7.769 billion yuan ($1B USD).”