Fun

$1.1 Billion Crypto Ponzi: Masterminds of Wotoken Head to Prison in China

News Feed - 2020-11-01 02:11:53

$1.1 Billion Crypto Ponzi: Masterminds of Wotoken Head to Prison in China


A Chinese court has confirmed the sentencing of the masterminds behind the 7.7 billion yuan Chinese Ponzi scheme Wotoken, which had over 715,000 investors. Wotoken Scammers Sentenced to Prison


The Intermediate People’s Court of Yancheng city, Jiangsu province, denied an appeal by four convicts involved in the billion-dollar Ponzi scheme Wotoken on Tuesday, several local media reported.


The court upheld the original sentences for Gao Yudong, Li Qibing, Wang Xiaoying and Tian Bo who were dissatisfied with their original sentencing and filed an appeal. They believe they had minor roles in the scheme. The four were sentenced to prison for 8 years and six months, seven years, seven years, and two years and six months respectively, IT Times reported. They were also fined 2 million yuan, 1.5 million yuan, 1.5 million yuan, and 1 million yuan respectively.


In addition, two other defendants were sentenced for their roles in the Wotoken scam. Li Guomin was sentenced to 3 years in prison and fined 100,000 yuan while Tang Xiaohua was sentenced to 6 months imprisonment with one-year probation, the publication added. In May, 12 people allegedly behind the Wotoken Ponzi scheme were tried, including the six defendants mentioned above.


Chinese law enforcement has seized 425 million yuan ($64 million) of illegal proceeds from the Wotoken scheme, which were turned over to the state treasury. The illegal proceeds belonging to the four who appealed will also be recovered and turned over to the state treasury, the publication conveyed.


The scheme involves a number of cryptocurrencies, collectively worth about 7.7 billion yuan ($1.15 billion), according to blockchain data. They included 46,050 BTC, 286 million USDT, 2 million ETH, 292,590 LTC, 56,900 BCH, and 6,841,797 EOS.




The Wotoken (WOR) platform attracted 715,249 registered users between July 2018 and October 2019. The scheme has 501 MLM layers.


At least one person behind the Wotoken Ponzi scheme was also a key member of a larger Chinese Ponzi scheme called Plustoken, according to an investigative reporter. The Plustoken Ponzi swindled about $6 billion from more than 715,000 investors. Chinese police took down the scheme in July, arrested 109 people involved, and charged six members with fraud.


What do you think about the Wotoken Ponzi scheme? Let us know in the comments section below. John McAfee Pumps Crypto From Prison, Denies Tax Fraud and Murder Charges NEWS | 2 hours ago FTX Increases Trump Futures Margins Before the Election, Biden Futures Lead by 64% NEWS | 23 hours ago Tags in this story chinese scam, Plustoken, Wotoken, wotoken scam, wotoken scammers


Image Credits: Shutterstock, Pixabay, Wiki Commons Use Bitcoin and Bitcoin Cash to play online casino games here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Tom Blackstone9 hours agoMultichain victims search for answers in $1.5B exploit as new evidence emergesChinese police may have busted Multichain in a money laundering investigation, but many questions remain, including i
Guneet Kaur12 hours agoWhat is the difference between DApps and protocols?Discover the contrasting functions of DApps and protocols in the blockchain world, and gain insights into how they contribute to the growth of dec
Cryptocurrency Trading Volumes Decreased 40% in June
Cryptocurrency Trading Volumes Decreased 40% in June Cryptocurrency trading volumes decreased significantly in June according to data from Cryptocompare, a price
Elizabeth Warren Blames ‘Crypto Risk’ for Silvergate Bank’s Liquidation, Critics Dismiss Senator’s Claims as ‘Terribly Misinformed’
Elizabeth Warren Blames ‘Crypto Risk’ for Silvergate Bank"s Liquidation, Critics Dismiss Senator’s Claims as ‘Terribly Misinformed’ After Silvergate Bank announced its vo
Market Update: Bitcoin World Reserve Theories, Market Cap Loses $16B, Analyst Predicts $7,500 ETH
Market Update: Bitcoin World Reserve Theories, Market Cap Loses $16B, Analyst Predicts $7,500 ETHDigital currency markets are down on Sunday evening roughly 2.14% as global trade vo
Central Bank of Peru Will Develop a Digital Currency
Central Bank of Peru Will Develop a Digital Currency The Central Reserve Bank of Peru, the Peruvian central bank, is planning to develop a central bank digital currency (CBDC) like
$50 Billion in Cryptocurrency Left China Amid Escalating Trade Wars
$50 Billion in Cryptocurrency Left China Amid Escalating Trade WarsOver $50 billion in cryptocurrency flowed out of China over the past 12 months amid trade wars, a new study finds.
Tech Industry Leaders Call for AI Labs to Pause Development for Safety, Coinbase CEO Disagrees
Tech Industry Leaders Call for AI Labs to Pause Development for Safety, Coinbase CEO Disagrees This week, 2,600 tech industry moguls and entrepreneurs, including Elon Musk, Gary Ma
Dogecoin Price Closes In On Major Trendline For Breakout To $1
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Singapore-Based Carpooling Platform Ryde Plans to Support Bitcoin Payments
Singapore-Based Carpooling Platform Ryde Plans to Support Bitcoin PaymentsThe popular and first Singapore-based carpooling platform, Ryde has revealed that customers will soon be ab
Bitcoin, Ethereum Technical Analysis: BTC Surges Above $30,000 to Start the Week
Bitcoin, Ethereum Technical Analysis: BTC Surges Above $30,000 to Start the Week Following a weekend which saw bitcoin trading mainly in the red, prices rebounded to start the week
Nepal Prepares to Issue Digital Currency, Drafts Necessary Amendments
Nepal Prepares to Issue Digital Currency, Drafts Necessary Amendments A task force in Nepal has proposed legal changes allowing the country’s central bank to issue its own d