Chinese police arrested suspected members of a financial pyramid.
72 suspected employees of the CloudToken financial pyramid were arrested by Taiyuan police. 8btc reports that employees are suspected of involvement in fraud, due to which 300 local residents lost 4.3 million dollars. The CloudToken pyramid is positioned by developers as a cryptocurrency wallet that itself earns a reward to customers. But it works on the principle of a developed referral system with large payments for invited participants, as well as the more famous PlusToken pyramid. Some experts even believe that this pyramid has reached almost the same scale as PlusToken. https://twitter.com/DoveyWan/status/1161999242434453504 CloudToken's activity extends beyond China and captures a number of other Asian countries, such as Korea, Japan, Indonesia, and Malaysia. Moreover, the pyramid has many contributors from Africa. According to 8btc, who managed to communicate with an anonymous contributor, the CloudToken pyramid promises participants up to 10% of the deposit per month. And to replenish the account and accrue bonuses, project tokens are used. “At the same time, the person who promises all these rewards has disappeared, and more than 800,000 participants are wondering when and how they will receive their initial investment back” The police and experts are sure that the losses from the pyramid’s activities have already reached $ 500,000,000, but with new details, this value may increase.