EOS wallet provider allegedly absconds with illicit gains of up to $52 million.

According to ChainNews, another EOS-based wallet application is reported to have exit scammed. The wallet app falsely claimed to be a super node for illegal fundraising activities, promising users daily static returns ranging from 0.342% to 3.42%. The illicit gains amounted to $52 million.

Ponzi Scheme Project: Deceptive "EOS Ecology"

The project known as "EOS Ecology" has been deceiving users since its inception by falsely claiming to be a core member of the EOS super node - Starteos team, using the reputation of the Starteos super node to gain users' trust. The initial supply of EOS blockchain was 1 billion, with an additional 5% token issuance annually. The 21 super nodes can only share 1% of the total, but EOS Ecology promises users a daily static return of 0.342% - 3.42%.

In February of this year, reports emerged that the person in charge of "EOS Ecology" had been arrested by Chinese public security. By March, Starteos also issued astatement clarifying that EOS Ecology was not a core member of the team, directly stating that the project was a pyramid scheme fraud. As the official clarification dispelled rumors, it also ignited the fuse for EOS Ecology to run away.

Nevertheless, many loyal users still believed the project was profitable and deposited their coins into their wallet accounts. It wasn't until yesterday that users of EOS Ecology reported being unable to log into their accounts, with most of the funds already transferred out of the application's accounts, leading these investors to realize that their assets had long been gone.

Not the First Nor the Last

In fact, since the development team Block.one released the open-source blockchain software EOSIO in 2018, there have been numerous Ponzi schemes revolving around the EOS blockchain. Projects like EOS Finance, EOS Community, and EOS Planet have all been proven to be fraudulent. Investors must be extremely cautious in this regard to avoid falling into a trap unknowingly.

Additionally, according to ChainNews, the project currently holds EOS worth $52 million. Although EOS is easily traceable and the stolen funds are currently under the monitoring of the Huobi exchange, the project will undoubtedly seek channels to cash out. Coupled with the lack of positive news about EOS recently, the short-term trend of EOS may not be very strong.

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