A court in the city of Yancheng, China has denied the appeal made by four convicts behind the WoToken Ponzi scheme. The court sentenced the convicts to 2.5 until 8.8 years in prison. The illegal funds will proceed to the state treasury.
The ruling also points out that the involved crypto assets in the scheme are, 46,050 BTC, 286M USDT, 2M ETH, 292,590 LTC, and 6,841797 EOS.
The court ruling states that the convicts Gao Yudong, Li Qibing, Wang Xiaoying and Tian Bo; has operated the WoToken trading from August 2018 until October 2019. It attracted 715,249 users from China with the pyramid scam.
The perpetrators lured in users by claiming that their platform could yield both static and dynamic interests through a trading algorithm that did not actually exist. The scammers said this would allow them to take advantage of arbitrage opportunities on global crypto exchanges and even promised their users interest returns by taking more funds from others.
The perpetrators attract users by saying that the platform can yield static and dynamic interests in an nonexistent trading algorithm. A reporter says that a member of the scam was also a part of a larger Ponzi scheme, Plustoken.