$160 000 000 USD

JUNE 2019




"Some of the victims responded to the main head of the TokenStore , “Niu Niu”, which has a case on the Internet in China. This shows that it has previously participated in similar “financial fraud”. At a time when P2P is under strong supervision, these people have moved fraudulent means to the field of cryptocurrency. The same formula, the same taste , using the cognitive blind spots that people are eager for wealth but can't understand the blockchain, re-implement fraud."


"The TokenStore wallet stipulates a withdrawal fee of 5% within 30 days and a withdrawal fee of 1% after 30 days. This is not only inconsistent with the transaction logic of the blockchain, but also clearly means that the project party intends to reduce your frequent withdrawals."


"[S]uch a project with the nature of a Ponzi scheme will have a thunderous day sooner or later. The PeckShield security team has exposed dozens of similar financial wallet scams including PlusToken, TokenStore, EOS ecosystem, etc., which all confirm this."


"From June 10th, the wealth management wallet TokenStore was suspected of running, and within the scope of statistics, at least thousands of users involved in hundreds of millions of assets were taken away. PeckShield has initially tracked the flow of some assets such as EOS, ETH, ETC, and USDT in the previous article "Text Tracking TokenStore "Running Road Assets Money Laundering (1)" ."


"Every step of the road assets affects the hearts of investors. PeckShield Digital Asset Escrow (AML) has been continuously tracking addresses on critical chains that involve “running”. Recently, PeckShield security personnel further analyzed that the ETH part of these digital assets has undergone a lot of money laundering operations, of which 10,756 ETHs have flowed into the exchange, and the EOS, USDT and other currencies have not yet had abnormal movements."


"As of 2019-06-28, 38,283 ETH has 10,756 flows to the exchange, and the remaining 27,527 ETH is temporarily stored in 27 addresses." "As of [July 11th], the cryptocurrency of the TokenStore running assets flowing into the exchange has been monitored for a total value of $8.7 million. Regarding the flow of more running assets, PeckShield security personnel will continue to follow up on the monitoring and disclose details in subsequent articles."

Limited information appears about the TokenStore ponzi scheme, which supposedly claimed $160,000,000 USD when it collapsed in June 10th, 2019. While the security firm Peckshield was involved with tracking down the funds, there is limited evidence that any funds were recovered.


Multiple respected blockchain entities exist outside of any oversight, in offshore jurisdictions. This is a situation which is fundamental to the blockchain being a global system, however it has also been increased through regulatory overhead, lack of clarity, and ongoing cost required to establish and maintain regulatory compliance, which often precludes innovative firms from even applying. Many countries that have strong foundations in blockchain technology have leading firms leave the country and establish offshore. At the same time, the general public doesn't understand how any of these regulations work to protect them, and following the stringent advice of sticking to purely regulated products is unlikely to be the norm among seasoned blockchain users.


A framework with transparent and public reports for exchanges and innovative technologies (including a verification of full backing of customer funds) would introduce an expectation of this information existing, and make a ponzi scheme stand out. Most existing audits are revenue-focused and have inadequate information in this regard. (For example, no breakdown of crypto asset liabilities.) When regulations are affordable for small platforms and simple enough for the general public to understand, reputable platforms will be less likely to choose to operate from offshore jurisdictions. Frameworks that maintain power in the hands of platforms, industry, and the community, are less likely to create conflict with innovation. An open-ended and decentralized, community-run insurance fund is one of few structures which could actually step in to assist victims of unregistered ponzis.


Check Our Framework For Safe Secure Exchange Platforms

Sources And Further Reading

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