Like BitConnect or Plus Token, Cloud Token emerged as a Ponzi project with a tight structure, deceiving a lot of money from investors.
What is Cloud Token?
Scams in the world of cryptocurrencies can come in many different shapes and forms. Cloud Token is the first e-wallet in the world to integrate all cryptocurrency on the same Blockchain network. They want to make an ecosystem, including an electronic wallet using the most advanced 4.0 Blockchain today, along with the mobile payment system entirely through the Cloud Token wallet.
Cloud Token seemingly operated in a matter that was nearly identical to Plus Token.
Like BitConnect or Plus Token, Cloud Token also works on the same multi-level marketing technique with a high referral fee. BitConnect is a cryptocurrency that pays dividends to hodlers. Meanwhile, Plus Token is a dividend payment wallet based on the token holding rate. And if this project is the same as the names mentioned above, it will inevitably cause a lousy ending for those who have used those products.
This Ponzi project also works as Plus Token. This is a wallet that promises to pay dividends according to the token holding ratio of customers. Cloud Token focuses mainly on China, Korea, Singapore, Malaysia, Japan, Vietnam, and Indonesia markets.
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Cloud Token executives have been arrested
According to a report from China, another major cryptocurrency scam has been cracked by Chinese police. And this scam is none other than Cloud Token. More than 70 suspects were arrested, and about $ 4 million were stolen.
Taiyuan police successfully cracked the first case of cloud currency platform trading virtual currency with blockchain in this city, captured 72 suspects, there were more than 300 victims and involving more than $4 million.
(the scene is…? )https://t.co/X8RYpknaAp#China pic.twitter.com/UsHuSsdK2E
— Crypto Even (@Crypto_Even) December 23, 2019
Reports suggest that withdrawals were stopped starting to emerge around early November 2019. However, the website is still functioning normally. Currently, it is not known whether users will get a refund. But when considering the frauds from the seniors mentioned above, likely, this project will also rob investors of their money.
The semi-anonymous nature of cryptocurrencies seems to attract bad actors and scams into space. Unfortunately, the success of scams in the cryptocurrency space seems to guarantee that we will see them by 2020. One must be wary of platforms that promise incredibly high referral fees and dividend payments.
They promise 10% monthly interest just like Plustoken did before shutting down with over $3b. So let’s educate people. Cloudtoken is like MMM but more deadly. Be care with ponzi coming from Asia. Those guys are king of scam. pic.twitter.com/lDVGC5q2Gz
— Emmy (@EmmanuelChibugo) August 17, 2019
Update:
Some Chinese investors said that these are the same people behind PlusToken, Wotoken and some other Ponzi schemes. Considering that some key members behind the PlusToken scam have been under arrest while other scammers at large are still dumping its crypto, there’s little chance for investors of such projects to get their money back.
On the same day, police in Baotou, a city of Inner Mongolia in northern China, warned the public of the Wotoken to exist scam as many investors reported that withdrawals were stopped and soon the Wotoken wallet app ceased operation.
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