Several individuals who founded a cryptocurrency-based pyramid scheme under the name WoToken were sentenced by the Chinese court to prison sentences.
According to The Block’s report, the Chinese court sentenced the fraudsters who made a $ 1.1 billion worth of profits with the WoToken project. The four people who were the founders of WoToken and were responsible for the operation of the project were sentenced to prison terms ranging from two and a half years to almost nine years.
They made a billion dollar profits
Four individuals named Gao Yudong, Li Qibing, Wang Xiaoying and Tian Bo formed a pyramid scheme called WoToken in August 2018. The fraudsters also produced a token called WOR within this project.
The scammers claimed that WoToken had a proprietary trading algorithm and claimed that it could make money regularly with this algorithm. With this promise, scammers made 715,249 people across China a part of the WoToken chain. The fraudsters who continued to recruit members until October 2019 are among these people:
- 46 thousand 50 BTC,
- 286 million USDT,
- 2 million ETH,
- 292 thousand 590 LTC,
- They collected 6 EOS.
The value of these cryptocurrencies transferred to the WoToken chain was more than 7 billion yuan (around 1.1 billion dollars) at that time.
They were sentenced to prison terms
The trial for WoToken’s founders was held at a court in Jiangsu district. With the court decision taken on October 27, the crypto currency emphasis of $ 1.1 billion ended with imprisonment.
The court ordered the confiscation of the assets worth 425 million yuan ($ 60 million) belonging to these four people, as well as sentencing four people to prison. These assets seized by law enforcement will be transferred to the state treasury.