DOJ receives documents in ex Bakkt CEO Kelly Loeffler insider trading case

DOJ receives documents in ex Bakkt CEO Kelly Loeffler insider trading case

While the world is still captivated by the PlusToken scam, a report reveals another large-scale crypto Ponzi scheme operating in China.

Chinese authorities have shut down a crypto Ponzi scheme operating under the name of WOTOKEN that scammed over 1 billion US dollars from unsuspecting investors. The scam, second only to the notorious PlusToken scam, stole massive amounts of cryptocurrencies from investors in the years 2018 and 2019.

WOTOKEN crypto Ponzi sheme

According to the reports, the scheme hosted more than 700,000 uses and holds around 46,000 BTC and more than 2 million ETH. If the operators of the scam act similarly to PlusToken operators and begin selling the crypto into open markets, the price action of both Bitcoin and Ethereum might face huge bearish pressure.

Now Dovey Wan, a founding partner at primitive Crypto, revealed another gigantic-sized crypto Ponzi scheme. 

Wan revealed that the Chinese authorities have shut down their operations. However, the operators have managed to scam more than 1 billion dollars in various crypto assets.

Wan also revealed the details of the total scammed crypto which included 46,000 BTC, 2.04M Ethereum, 292,000 Litecoin among other digital assets. The combined worth of the assets is more than 7.77 billion yuan (1 billion USD)

Another PlusToken?

PlusToken operators defrauded unsuspecting users out of their crypto assets collecting billions of dollars’ worth of digital assets. The operators later began seeking their holdings in the open markets instead of approaching OTC desks.

It was estimated that the scammers stole 200,000 BTC which they sold in small batches onto the open market. PlusToken operators began selling their stored crypto in 2019 when the price of Bitcoin reached highs of 14,000 dollars and caused the asset’s price to deteriorate. Some of the coins involved in the scams can still be seen moving in reasonably large amounts.

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