Chinese Police Busted Crypto Scam CloudToken with 72 Suspects Arrested
Chinese police has recently busted another major cryptocurrency scam called CloudToken, with 72 suspects arrested and 30 million yuan (over $4 million) involved.
According to local police in Taiyuan, the capital and largest city of Shanxi province in Northern China, they have arrested a gang of 72 suspects who had swindled over 30 million yuan from more than 300 victims in the country.
Like the infamous $3 billion PlusToken scam, CloudToken (CTO) also works on the same multi-level marketing technique with high referral fees. Started in January this year, CloudToken adopts a 21-level compensation plan to reward its investors – once your signups achieve certain ranks, you’ll get paid bonus amounts. It promises 10%-15% ROI (return on investment), and investors have to maintain a minimum $500 worth of the token at all times to have that profit.
Based in China, the CloudToken project is actively promoted in Asian countries like Korea, Japan, Indonesia, Malaysia, etc; it even targeted African countries. Considering its vast reach, the fraudulent amount is said to have a similar scale of PlusToken.
According to an anonymous victim who told 8btc that he/she had been swindled 20k dollars by the CloudToken scammers,
“The crypto scam stole over 500 million dollars from unsuspecting holders, claiming it’s a decentralized wallet that would reward its users for holding coins. Payment was to be received in the form of the company’s utility token and the reward would be 6% to 10% of the invested coin amount… while the man promising all these rewards vanished with over 800,000 members wondering when and how they will get their initial investment back.”
Some Chinese investors said that these are the same people behind PlusToken, wotoken and some other Ponzi schemes. Considering that some key members behind the PlusToken scam have been under arrest while other scammers at large are still dumping its crypto, there’s little chance for investors of such projects to get their money back.
On the same day, police in Baotou, a city of Inner Mongolia in northern China, warned the public of the wotoken exist scam as many investors reported that withdrawals were stopped and soon the wotoken wallet app ceased operation.