April 23, 2020 – EOS Ecosystem, a Chinese wallet app for EOS has shut down, locking out its users of their funds which totals $52 million combined.
The Chinese media reported that the account holder of one of EOS Ecosystem’s wallet address moved 890,000 EOS tokens, leaving the wallet with mere 500 EOS tokens. Furthermore, one main account apparently received $52 million worth of EOS tokens and speculation is that more funds may still be missing.
Transactions on the blockchain suggest the funds were transferred to Huobi Exchange. The exchange promised it will freeze the funds once they could detect it.
Chinese media ChainNews said EOS Ecosystem does not have an EOS node as it claims and was sued in a local court in China for running a pyramid scheme that involves $81 million worth of EOS tokens in 2019.
The team called w.io might be the group behind the scam. Initially, w.io claimed to be part of Starteos, a Chinese crypto wallet based on the EOS network.
Many scams have run on EOS, although the same can be said on other blockchain networks. Some, like EOS Vote and EOSCUBE were initially revealed to be building products but turned out to be fraudulent.
This article is published on BitPinas: EOS Ecosystem Wallet Shuts Down, Locking Users of their Funds Worth $52 Million