The Chinese Scam WOTOKEN In Recent Crypto News

The ability to rid investors of their digital assets can be profitable, as shown in the Chinese scam WOTOKEN. In recent news, WOTOKEN had separated more than $1 billion in Bitcoin and other digital investments from over 700,000 investors. This grand-scale crime is currently in trial and started on May 14, 2020, in the People’s Court of Binhai Country.

The WOTOKEN Details

After some investigation, it appears that the Chinese scam WOTOKEN was operating from July 2018 until the following October 2019. Naming 6 total defendants, with some having previous criminal activities, this new Chinese scam has brought digital criminals to light. One of the individuals involved that were charged also has significant ties to the last PlusToken scam in China.

Some of the specific details of losses from WOTOKEN include:
• 46,000 Bitcoin (BTC)
• 56,000 Bitcoin Cash (BCH)
• 2 million Ethereum (ETH)
• 292,000 Litecoin (LTC)
• 684,000 Eos (EOS)
• Large amounts of lesser-known cryptocurrencies

It seems that many online investors are vulnerable to these types of MLM (Multi-Level Marketing) doings around the world. Chinese authorities became first aware of WOTOKEN activities back in August 2018. The claims of quick profits through a smart online wallet for cryptocurrencies without human interaction set off warning bells.

The dealings of this new Chinese scam WOTOKEN operated without any actual online cryptocurrency-related business. As another MLM setup, it contained 501 levels of hierarchy, making it suspicious to many. While there are some current reputable MLM organizations, it seems that scammers use this platform quite often to entice victims.

All named individuals in the WOTOKEN case have pleaded guilty in court and are awaiting sentencing. The recommended sentence for this crime is anywhere from 6 months to 11 years in total. While some individuals involved may have lighter sentences, others that have previous criminal activity could receive longer sentences.

Chinese scam

Similar to the Chinese Scam PlusToken

Many crypto enthusiasts are remarking how WOTOKEN is similar to the PlusToken scam from early 2019. Boasting 10% yields per month, PlusToken gave the ‘Too Good To Be True’ feeling for investors. This multi-billion-dollar Ponzi scheme made headlines in 2019 when it had implications for the Bitcoin market prices.

One of the individuals named in the recent Chinese scam WOTOKEN had direct dealings with PlusToken as well. Because of this, WOTOKEN had similar facets that PlusToken had when operating. Each involved individual had a specific function in the group to operate this Chinese scam efficiently and swiftly. From fraudulent online promotions and platforms to recruiting, WOTOKEN was a well-thought-out project.

How to Avoid Scams

There are many ways to avoid being the victim of a Chinese scam or other scamming activities. As more interest is generated in the cryptocurrency market, more new vulnerable investors are introduced giving scammers ample opportunities.

As you deal online, it’s important to know valid cryptocurrency exchanges and wallet providers to avoid being scammed. The best action to protect yourself is research. Check into the organization’s management team, research affiliates, and domains, for any suspicious activity or names. And remember if something seems too good to be true, it probably is.

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