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

A Chinese language court docket has showed the sentencing of the masterminds at the back of the 7.7 billion yuan Chinese language Ponzi scheme Wotoken, which had over 715,000 traders.

Wotoken Scammers Sentenced to Jail

The Intermediate Other people’s Court docket of Yancheng town, Jiangsu province, denied an enchantment via 4 convicts concerned within the billion-dollar Ponzi scheme Wotoken on Tuesday, a number of native media reported.

The court docket upheld the unique sentences for Gao Yudong, Li Qibing, Wang Xiaoying and Tian Bo who had been disappointed with their authentic sentencing and filed an enchantment. They consider they’d minor roles within the scheme. The 4 had been sentenced to jail for eight years and 6 months, seven years, seven years, and two years and 6 months respectively, IT Instances reported. They had been additionally fined 2 million yuan, 1.five million yuan, 1.five million yuan, and 1 million yuan respectively.

As well as, two different defendants had been sentenced for his or her roles within the Wotoken rip-off. Li Guomin was once sentenced to a few years in jail and fined 100,000 yuan whilst Tang Xiaohua was once sentenced to six months imprisonment with one-year probation, the e-newsletter added. In Might, 12 other folks allegedly at the back of the Wotoken Ponzi scheme had been attempted, together with the six defendants discussed above.

Chinese language legislation enforcement has seized 425 million yuan ($64 million) of unlawful proceeds from the Wotoken scheme, which have been became over to the state treasury. The unlawful proceeds belonging to the 4 who appealed can be recovered and became over to the state treasury, the e-newsletter conveyed.

The scheme comes to quite a lot of cryptocurrencies, jointly value about 7.7 billion yuan ($1.15 billion), in keeping with blockchain information. They integrated 46,050 BTC, 286 million USDT, 2 million ETH, 292,590 LTC, 56,900 BCH, and six,841,797 EOS.

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

No less than one particular person at the back of the Wotoken Ponzi scheme was once additionally a key member of a bigger Chinese language Ponzi scheme known as Plustoken, in keeping with an investigative reporter. The Plustoken Ponzi swindled about $6 billion from greater than 715,000 traders. Chinese language police took down the scheme in July, arrested 109 other folks concerned, and charged six individuals with fraud.

What do you consider the Wotoken Ponzi scheme? Tell us within the feedback phase under.

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