China detained 72 suspects of involvement in the crypto pyramid CloudToken
Police in China have thwarted another crypto scam. According to 8btc, 72 people were arrested who are suspected of involvement in the CloudToken pyramid.
Similar to the acclaimed PlusToken, CloudToken uses multi-level marketing techniques with high referral payments. CloudToken launched this January and offers a 21-tier payout plan to attract investors. When registering, a user is assigned a certain level, in accordance with which he receives payments. According to the promises of the organizers, the return on investment should be at the level of 10-15%. In addition, investors need to maintain the balance of tokens at $ 500 to participate in the program.
CloudToken was based in China and actively promoted in other Asian countries, including South Korea, Japan, Indonesia and Malaysia, as well as in Africa. Given the wide scope of the scheme, some suggest that in scale it could be comparable to PlusToken.
“Fraudsters stole over $ 500 million from unsuspecting holders under the guise of a decentralized wallet that was supposed to reward users for holding coins. Payments were to be made in the company’s utility token. The man who promised all the rewards has disappeared, and 800,000 participants can only guess when and how they will be able to get their money back, ”writes 8btc, citing an anonymous victim of the scheme..
According to reports in other media, CloudToken has about 300 victims, and losses amount to over $ 4 million.
Others claim that CloudToken was organized by the same people who created wotoken and some other pyramids. On the same day with this news, the police in the city of Baotou warned residents about the alleged exit scam wotoken, whose investors began to report the termination of payments. Soon, the project’s application was unavailable, writes 8btc.
Previously, the sale of PlusToken assets was associated with the fall of bitcoin in the second half of this year.
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