CLOUD TOKEN

DESCRIPTION OF EVENTS

"In 2018, the cryptocurrency community was introduced to a project called Cloud Token. CTO called itself the first online wallet that could integrate all the popular crypto assets out there today. The creators claimed CTO was a ‘4.0 blockchain project’ and the wallet held USDT, TUSD, BCH, CTO, BTC, LTC, ETH, and DOGE. Just like Plustoken, CTO promised 6-12% interest every month." "CloudToken adopts a 21-level compensation plan to reward its investors – once your signups achieve certain ranks, you’ll get paid bonus amounts. It promises 10%-15% ROI (return on investment), and investors have to maintain a minimum $500 worth of the token at all times to have that profit." "An editorial published by the China-based publication 8btc explains that during its tenure, the CTO project got away with $500 million. An anonymous CTO victim told 8btc that they deposited $20,000 into the wallet." “Payment was to be received in the form of the company’s utility token and the reward would be 6% to 10% of the invested coin amount. [Meanwhile] the man promising all these rewards vanished with funds from over 800,000 members wondering when and how they will get their initial investment back.”

According to another victim, “[S]tarting in October last year, Cloud Token was no longer handing out bonuses, or vacation and hotel vouchers, and its employees in Taiwan were telling us to be patient, that there were delays because of the protests in Hong Kong and the COVID-19 pandemic,” “Then, early this year, Cloud Token suddenly stopped running any transactions and we could not access it — we realized it was a scam,” "Chinese law enforcement recently busted 72 individuals connected to the Cloud Token (CTO) scam." The website is still online - "Cloud Walletversion 2.0 is a fully distributed wealth management digital wallet utilizing the 4th generation of blockchain technology, allowing users to securely transfer, store, earn and spend cryptocurrency anytime, anywhere. It is simple and easy to operate, with hundreds of compression tests, powerful anti-theft technology to maximize the security of digital assets." And yes, it still includes an "AI Arbitrage Trading Bot".

While not an exchange platform, inherent transparency in trading platforms as the norm would go a long way to reduce scams like this. Easy registration for all cryptocurrency trading businesses can give consumers an easy way to check the legitimacy and backing level of any operation.

What is cloud token wallet? How to invest in Cloud Token? (May 21)
News Release | BCSC (Oct 2)
BCSC warns investors about cryptocurrency 'smart wallets' | CTV News  (Oct 3)
Cloud Token and the Rise of MLM Crypto Projects | Featured Bitcoin News (Dec 28)
Is Cloud Token a Scam? Top 6 Red Flags - WATCH THIS ASAP!!! - YouTube (Oct 6)
Ponzi Scheme Cloud Token Drafts New Contract for Investor Exit, Not Likely To Get A Pay Out (Jan 22)
Shenzhen Court warns public about Cryptocurrency Ponzi Schemes - Asia Crypto Today (Jun 11)
Investors call for investigation of Cloud Token - Taipei Times (Jun 18)
Cloud Token Wallet (Oct 5)

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