On 27 October, a court in Yancheng City, Jiangsu Province, China, sentenced the organizers of the WoToken crypt currency pyramid to prison terms ranging from 2.5 to 8.8 years. The court rejected the appeal filed by the organizers of the scheme and also ruled that 425 million yuan ($60 million) of illegal income would be confiscated by law enforcement agencies. This was reported by The Block.
According to the court’s decision, Gao Yudong, Li Qibing, Wang Xiaoying and Tian Bo managed the WoToken trading platform with WOR token, which was a financial pipidu, from August 2018 to October 2019.
The organizers argued that the platform could generate revenue from a non-existent trading algorithm that could take advantage of arbitration opportunities on global crypto exchanges. In fact, according to court documents, the organisers were paying the promised revenue at the expense of new users.
As of 8 October 2019, WoToken had 715,249 users in China.
The court also cited data from the Blockchain, which shows that the organisers had attracted 46,050 BTCs, 286 million USDTs, 2 million ETHs, 292,590 LTCs and 6,841,797 EOS, which together were valued at 7.7 billion RMB ($1.1 billion).