A court in China has sentenced the organizers of the WoToken cryptographic pyramid to various terms of imprisonment, with losses of around $1.1 billion, The Block reports.
According to the court’s decision, four convicts will spend between 2.5 and 8.8 years behind bars.
The four convicts will spend between 2.5 and 8.8 years behind bars. The 425 million yuan (~$63 million) in illegally obtained revenues from the Ponzi scheme will be confiscated in favour of the state.
The court found that Gao Yudong, Li Qibing, Wang Xiaoying and Tian Bo were managing a WoToken trading platform with a WOR native token based on a multi-level pyramid scheme from August 2018 to November 2019.
As of 8 October 2019, the platform had attracted 715,249 users from China.
The court cited the total number of assets they had invested in the fraudulent scheme, including:
286 million USDT;
2 million ETH;
6.8 million EOS.
At the time of the arrest of the organisers of WoToken in May this year, the total value of funds received by the platform was approximately 7.7 billion yuan (~$1.1 billion).
Recall that last year, Chinese law enforcement agencies detained key suspects in the organization of the PlusToken pyramid for more than $3 billion.
In September this year, the prosecutor’s office brought charges against all six detainees. They were charged with organizing and managing a fraudulent scheme.