On May 14, the “wotoken” mega-level MLM case was opened in the People’s Court of Binhai County, Yancheng City, Jiangsu Province. On August 27, the People’s Court of Binhai County disclosed the criminal verdict of the huge network pyramid scheme. After the verdict was pronounced in the first instance, Gao Yudong, Li Qibing, Wang Xiaoying, and Tian Moubo appealed.
On October 27, the Intermediate People’s Court of Yancheng City, Jiangsu Province announced the second-instance criminal ruling on the “WoToken” mega-virtual currency pyramid scheme through the China Judgments Network. The wotoken mega-wallet virtual currency fraud case finally landed.
Development
In 2016, Gao Yudong invested and established Shenzhen Qianhai Bobao Technology Co., Ltd. (hereinafter referred to as Bobao Company) in Shenzhen, Guangdong Province. The main business of this company is the maintenance and agency issuance of virtual digital currency exchanges such as WOEX.
In 2018, Wang Xiaoying contacted the plustoken MLM platform under the guise of blockchain digital currency through his friend Chen Bo. After that, Chen Bo let Wang Xiaoying, Li Qibing and Liu Liangting be responsible for marketing.
A month later, Wang Xiaoying, Li Qibing, and Liu Liangting discovered that the technology of the plustoken MLM platform was immature, and members often lost coins and left on the platform, but they mastered the criminal methods of MLM. In order to obtain illegal benefits, they planned and had similar functions. The APP platform cooperates to engage in criminal activities of network pyramid marketing.
Around August 2018, Li Qibing found Gao Yudong and introduced Wang Xiaoying and Liu Liangting (Xingju Fu at large) to Gao Yudong. The four people jointly agreed to build the WoToken platform, fictitious “Apollo” robot, through arbitrage transactions on global digital currency exchanges, promised to pay investors static and dynamic income, and defraud members of money and goods.
Immediately, Gao Yudong used the company’s technology to hire technical personnel to develop the WoToken platform. After the operation of the WoToken platform, Gao Yudong is mainly responsible for the technical maintenance of the WoToken platform, digital currency management, employee wages, and manipulation of the platform’s WOR currency release; Gao Yudong’s wife Tian Mo assists in the storage of the WoToken platform digital currency, digital currency exchange, and employees Salary payment and other work; Li Qibing, Wang Xiaoying and others are mainly responsible for the promotion and training of the WoToken platform.
The benefits of WoToken platform members are mainly static benefits, dynamic benefits, and community revenue models. The dynamic revenue model requires members to develop offline, and the funds invested in the offline to pay for the benefits of online members, and the community revenue means that the membership development offline reaches the system regulations After the quantity and amount, in addition to the static income and dynamic income, additional income will be obtained.
The confessions of multiple defendants and witnesses confirmed that these static income, dynamic income and community income were all derived from the principal invested by downline members, with the purpose of defrauding member funds. At the same time, the WoToken platform itself has no profitability and no legal income. It is just a fund. “Apollo” robot intelligent income is also fake. Normal high-frequency quantitative trading refers to buying low and selling high among different exchanges around the world. The WoToken platform does not have this function at all.
As of October 8, 2019, the WoToken platform has a total of 715,249 registered members, and the absorbed USDT, BTC, ETH, LTC, BCH, and EOS digital currencies were worth more than 7.7 billion yuan on the day of the case.
During the period when Gao Yudong and Tian XX were managing the digital currency of the WoToken platform, the withdrawal realized approximately RMB 16.17 million and USD 1.58 million; Li Qibing realized approximately RMB 23.389 million in withdrawal; Wang Xiaoying realized 2.36 million in withdrawal. The illegal profits obtained from withdrawals were used to purchase 2 sets of Lida Cullinan properties in Zaoyang Country Garden and 1 Porsche car.
Concealing and concealing the proceeds of crime: On the afternoon of October 30, 2019, Li knew that Li Qibing’s two mobile phones contained the digital currency ETH through the proceeds of crime, and still helped Li Qibing transfer and hide 49752.3737 ETH.
Containment: Since October 8, 2019, the defendant Tang knew that Wang Xiaoying used the WoToken platform to organize and lead MLM criminal activities, and knew that the public security organs were arresting relevant personnel on the WoToken platform and still provided Wang Xiaoying with a residence. Hiding until the defendant Wang Xiaoying was arrested.
Pronounce sentence
The People’s Court of Binhai County believes that the actions of Gao Yudong, Li Qibing, Wang Xiaoying, and Tian XX constituted the crime of organizing and leading pyramid schemes, and the circumstances were serious; Li knew that the digital currency held by Li Qibing was the proceeds of crime and still helped The transfer and concealment constituted the crime of concealing and concealing the proceeds of crime, and the circumstances were serious; Tang Moumou knew that Wang Xiaoying was a criminal, but he still provided a place for him, and his behavior constituted the crime of concealment.
In order to strictly apply national laws, fight crimes, and protect the socialist market economy from illegal infringements, according to the relevant laws, Gao Yudong was sentenced to 8 years and 6 months in prison for the crime of organizing and leading pyramid sales activities, and a fine of 2 million yuan. Yuan; Li Qibing and Wang Xiaoying were sentenced to 7 years in prison and a fine of 1.5 million yuan; Tian Moumou was sentenced to 2 years and 6 months in prison and a fine of 1 million yuan.
At the same time, Li and Tang were sentenced to 5 years probation and 1 year imprisonment for the crime of concealing and concealing the proceeds of crime and the crime of harbouring, respectively, and a fine of 100,000 yuan. The illicit money seized in the case of more than 425.69 million yuan and the fruits, as well as the illegal gains, were confiscated and turned over to the state treasury.
After the verdict was pronounced in the first instance, Gao Yudong, Li Qibing, Wang Xiaoying, and Tian Moubo appealed. After accepting the case, the court of second instance formed a collegiate panel in accordance with the law. After reviewing the files, interrogating the appellant, and hearing the opinions of the defender, it believed that the facts of the case were clear, the facts identified in the original judgment were clear, the evidence was reliable and sufficient, the conviction was accurate, the sentencing was appropriate, the trial procedures were legal, and it was decided not to open the court. Trial. On October 19, the court of second instance rejected the appeals of the appellants and upheld the original judgment in accordance with relevant laws.
In the “Wotoken” wallet case, I hope to give investors some warnings. The so-called “brick arbitrage” model is actually unable to obtain such high returns in the currency circle, but some people use the guise of “brick arbitrage” to commit fraud. That’s it. Also, as long as there is an upgrade to 2.0 or any favorable policy on the plate, you must be vigilant when you did not return to the deposit, because it may be the last lap of the trader to prepare to run.
