Chinese Ponzi Wallet ‘EOS Ecosystem’ Shuts Down; Investors Locked Out Of $52M in Funds

  • ‘EOS Ecosystem’ wallet app has shut down its services suddenly with investors being denied access to user accounts.
  • It is rumored that the founders have made away with over $52 million in investor funds.

Reports have now surfaced that an EOS based wallet has seized its operations with the company’s top brass reportedly making away with over $52 million in investor funds. Located in China, the wallet had promised its investors handsome returns for their deposits.

Earlier in the week some of the investors unsuccessfully tried to gain access to their accounts. According to reports from Chinese media outlets, large sums of investor funds were transferred to the Huobidevice3 account.

Source: ChainNews

There is however a shared sentiment that this might not have been the brightest of ideas as using EOS to cash out meant that the funds were now easily traceable and monitored as Huobi is generally the largest Over the Counter (OTC) exchange.

“Investors have stated that they are no longer able to log in.”

Marred by Controversy since launch

EOSIO, the open-source Blockchain solution, has been at the center of controversy since its launch in 2018. Having been reported that quite a number of companies have used the Blockchain’s cryptocurrency as a conduit for carrying out their pyramid schemes. Consequently, the ecosystem supported by the Blockchain; EOS Vote, EOSCUBE and EOSFIN have also been identified to all be unscrupulous fronts

Falsified having an EOS node

Notably, the “EOS Ecosystem” reputation was put into question when they were exposed to purporting to own an EOS node which was not the case. According to media outlets in China, the supposed EOS node was none existent and even mislead investors with the introduction of CryptoLion and team info. Allegations that super EOS node Crypto Lions via their website vehemently denied and issued a scam alert distancing themselves from the ‘cryptolions2’ account.

They were subject to court proceedings in China last year after they were sued for allegedly carrying out a pyramid scheme of over 33 million EOS tokens equivalent to $81 million at the time.

This article is Originally posted on CoinCentral.com
Author: Lujan Odera

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