The Chinese have been taking over the crypto news section following the fast-paced development of the digital yuan. However, the scams and the hacks continue to outshine the progress the crypto industry is making in the country. The latest news from the Asian country revealed that the formulators of a Ponzi scheme were sentenced by a court in the country.
No One Gets Past The Law
China’s Yancheng city’s intermediary court recently ruled that the people behind a $1.1 billion crypto Ponzi scheme were mandated to time in prison as their appeal was rejected. The Chinese citizens charged for operating the WoToken Ponzi scheme and garnered over $60 million that is about 425 million yuan through the scammy project.
The WoToken scheme was carried out by Li Qibing, Wang Xiaoying, Gao Yudong as well as Tian Bo. These convicts were running the platform from July 2018 all the way to October 2019. The platform had acquired a total of 712,248 users from China as of October 2019. Several crypto assets worth $1.1 billion [7.769 billion yuan] were accumulated by these fraudsters. This included 6,841797 EOS, 46,050 BTC, 292,590 LTC, about 2 million ETH as well as 286 million USDT.
The aforementioned convicts managed to harvest this profit by luring in its users’ by offering handsome returns. The WoToken trading portal had its native crypto asset the WOR token. While the court sentenced all these criminals to 2.5 to 8.8 years of prison, the funds they collected through this Ponzi scheme was acquired by the police and would be given to the state treasury.
Furthermore, Dovey Wan of Primitive Crypto revealed that one of the criminals part of this Ponzi scheme was also a member of the PlusToken scam project. China is undoubtedly the hotbed of crypto scams. The PlusToken scam was one of the biggest busts that the Chinese police would have made. More than 100 people were arrested by the police in light of being involved with the fraudulent project. Additionally, this year witnessed an array of crypto scams ranging from $14 million all the way to the most recent one of $1.1 billion.