WoToken $1 Billion Chinese Crypto Ponzi Scheme Trial Starts

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  • WoToken scammers have gone on trial after over $1 billion various cryptocurrencies were taken
  • WoToken project echoed PlusToken and OneCoin scams
  • Key figures from crypto scams often jump from one scam to the next

The trial of six operators of WoToken, a Chinese Ponzi scheme with echoes of PlusToken that took $1 billion of victims’ money, began last week following the closure of the platform last year. The trial represents the latest in an epidemic of Chinese crypto scams that has seen ringleaders move from one collapsed project to another, with no signs of the process stopping.

710,00 Victims and $1.1 Billion

WoToken is thought to have operated from July 2018 to October 2019, scamming over 700,000 people and amassing an incredible 46,000 BTC; two million ETH; 292,000 LTC; 56,000 BCH; 684,000 EOS; and numerous other cryptocurrencies. The total value of the haul equals over $1.1 billion at current prices, making it one of the biggest crypto scams to date.

Chinese media reported that the operation conducted no actual business and that their web presence, which suggested that the WoToken platform was connected to AI robotics, was a front for their illegal activities.

PlusToken Mk II

The Wotokan operation emulated the ubiquitous multi-level marketing ploy used by the likes of PlusToken and OneCoin which puts more emphasis on the recruitment of token package sellers than the fundamentals of the project, of which there are usually none.

It has been known for some time that those involved in large scale Chinese crypto scams who manage to escape arrest move onto others or start their own. It is no surprise therefore that one of the men standing trial is said to have been a key component of the PlusToken scam, while two others already had criminal records prior to their involvement in WoToken.

Where Are the Coins?

The fate of the cryptocurrency collected by the scammers is not known, and crypto investors will hope that the markets don’t see a repeat of the PlusToken affair which saw large amounts dumped on the market, crashing the price.

The defendants have all pleaded guilty to their crimes, which differ in severity and will therefore differ in punishment, ranging from fines to prison sentences. The case was adjourned on Thursday, May 14, and will reconvene for sentencing next week.