Notoriously the China he has no light hand towards those who break the law. A severity to which the treatment reserved for White collars of crime, or people who leverage finance to engineer scams.
The decisions of the Chinese judicial authorities against those responsible for the schema crypto Ponzi Wotoken they only confirm the assumption. Reiterating that the eastern giant is absolutely determined to stop fraudulent activities, clearly considering them to be highly socially dangerous.
What is Wotoken
Wotoken is a Ponzi scheme carried out with cryptographic tools. According to calculations, no less than 715 thousand people were involved in the scam, which had registered on the platform between July 2018 and October of the following year.
Chinese law enforcement officials seized 425 million yuan ($ 64 million) of illegal proceeds as part of the investigation, which were handed over to the state treasury. 46.050 were used in the scheme Bitcoin, USD 286 million Tether, 2 million ETH , 292.590 of LiteCoin 56.900 Bitcoin Cash and 6.841.797 by EOS.
The sentences imposed on those responsible
The Intermediate People's Court of the city of Yancheng, located in the Jiangsu province, rejected the appeal proposed by Gao Yudong, Li Qibing, Wang Xiaoying and Tian Bo. That is the four people who were considered the minds who conceived and carried out the Wotoken scam.
The four were sentenced to prison for eight years and six months, seven years, seven years and two years and six months respectively, as reported by IT Times, who also added that the condemned were also fined between two and one million yuan.
In addition to them were sentenced Li Guomin, to three years in prison (plus a fine of 100 thousand yuan), and Tang Xiaohua, six months in prison with one year of probation.
The appeal was made by the first four and motivated by severity of the first sentence, judged excessive in consideration of the fact that their involvement was not in the guise of the real creators of the scam.
The precedent of Plustoken
It should also be noted that one of the convicts had already been involved in the scam of Plustoken. That is another Ponzi scheme which has drained money from more than 715 thousand investors, for a total of more than 6 billion dollars. The project was blocked in July by the financial crime authorities, with the consequent arrest of 109 people and six people charged with fraud.
Confirming the fact that the cryptography sector, due to the great liquidity that distinguishes it, is becoming more and more practiced by scammers. Which, however, in China they seem destined to find bread for their teeth. As indeed confirmed by the sentences to which the leaders of the two Ponzi schemes in question were subjected.
China wants to protect financial innovation
A severity which is, moreover, understandable in light of the fact that the Asian giant is increasingly determined to proceed on the path of financial innovation. Not liking, therefore, the fact that a potentially promising sector can be tainted by opaque or openly illegal behavior. Which could push potential users to give up for fear of being a victim of fraud. The sentences inflicted on the Wotoken leaders are yet another demonstration of this.