Chinese WoToken Ponzi scheme leaders will serve time behind bars between 2.5 and 8.8 years, the court ruled
The intermediary court in the Yancheng city of China’s Jiangsu province has denied an appeal made by the masterminds of a $1.1 billion scam project WoToken sentenced to years in prison. They will serve time behind bars between 2.5 and 8.8 years.
WoToken’s team leaders
Back in May, the People’s Court of Binhai Country Yancheng City first against six defendants that operated the WoToken Ponzi scheme. The court blamed the defendants for organizing and managing a multi-level marketing activity that was covered by fake stories and provided misleading information but also doing serious crimes in the process. The Chinese authorities learned about the WoToken scam back in 2018. The defendants had different responsibilities within the organization varying from recruiting technical personnel and setting up the platform to create online promo campaigns.
The platform operated without any business activities but the marketing messages claimed that it worked as a smart crypto wallet that generated automatic profits for the users without them having to get involved. Because of the MLM based operations, and the claims of quick profits, WoToken was compared to another fraudulent scheme – PlusToken, that also came from China.
The Chinese WoToken scam functioned from 2018 to October 2019 and worked as a classic multi-level project but had a high number of hierarchal levels – 501. More than 715,249 people registered on the platform and the token absorbed more than 46,000 Bitcoins, 2 million ETH, 292,00 LTC coins, 684,000 EOS, and 56,000 BCH. The report calculated that the total amount raised reached almost $1.1 billion.
- Wotoken Took In Roughly $1 Billion Worth Of Crypto At Current Prices From Over 715,000 Victims
- The Largest Scam Is Wotoken Of Chinese In The First Five Months Of 2020 With $1.09 Billion