Don’t Be the Next Victim of Cryptocurrency Scam

Cryptocurrency is often thought to be a lucrative business. Though investors are showing growing interest to it and more companies are entering the cryptocurrency realm, its an undeniable fact that the circle has much more scammers rather than real winners.

According to a Tuesdays report from block-chain investigation company CipherTrace, losses from cryptocurrency crime such as crypto theft, cyber-attack and fraud totaled US$1.4 billion in the first 5 months of 2020, with over US$1 billion of losses linked to a Chinese crypto Ponzi scheme named Wotoken.

What is WoToken and how did it managed to swallow up a billion？

WoToken is in fact a replica of PlusToken which was one of the most notorious crypto Ponzi scheme. The company claim to have established a global e-wallet in which investors can receive interests for their deposits. In addition, the company has a “Sunshine Community” that launched online advertisement campaign as well as offline marketing events to promote the “WoToken wallet” and attract unwary investors.

A typical pyramid sale, or Ponzi scheme

WoToken told its investors that the company has a “professional team” that invest their funds on the global stock market and ensure high monthly returns on the basis of securing the principle. An investment of over US$1,000 will make the investor an “Level 1 Member” entitled to a 6-10% monthly dividend, with even greater reward for introducing new members. In short, its a typical Ponzi scheme.

Currently the Ponzi scheme has collapsed after the broker escaped. Over 700,000 victims in Guangzhou, Shenzhen, Zhejiang, Shanghai and other places across China have filed the case for police investigation. Behind these data, countless cryptocurrency investors have suffered heavy losses.

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