The Wotoken scam took about $1 billion in currently priced crypt coins from over 715,000 victims.
One of the main perpetrators of the scam is allegedly linked to PlusToken, a multi-million dollar Ponzi scheme that is suspected of having impacted the price trajectory of Bitcoin (BTC) on numerous occasions throughout 2019.
Kryptonie scams are on the rise and can still affect the price of Bitcoin
The second Chinese ten-figure Ponzi scheme was caught
Earlier today, the Chinese media, Qianba, reported that the case of the „super big MLM network“ Wotoken had been opened for trial on May 14 in Yancheng city.
The scam claimed to generate profits for users by employing algorithmic trading robots, offering affiliates referral fees. However, as with most MLM scams, the advertised trading software did not exist.
Chinese Ponzi scheme of a cosmic crypto-currency absorbs USD 11 million in three weeks
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 arrest.
Wotoken was active from July 2018 to October 2019.
A Wotoken agent associated with PlusToken
Six defendants faced trial for handling Wotoken, including an individual with ties to the notorious Ponzi PlusToken scheme.
The new PlusToken report shows that Crypto Genius, Bitcoin Capital, The News Spy, Bitcoin Champion, Bitcoin Code may be smoke and mirrors
All six defendants pleaded guilty, and the court recommended prison terms of between six months and 11 years.