Cloud Token Wallet Service

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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.

This exchange or platform is based in Singapore, or the incident targeted people primarily in Singapore.

About Cloud Token

"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".

This exchange or platform is based in Singapore, or the incident targeted people primarily in Singapore.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

Known history of when and how the service was started.
What problems does the company or service claim to solve?
What marketing materials were used by the firm or business?
Audits performed, and excerpts that may have been included.
Business registration documents shown (fake or legitimate).
How were people recruited to participate?
Public warnings and announcements prior to the event.

Don't Include:

Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

When the service was actually started (if different than the "official story").
Who actually ran a service and their own personal history.
How the service was structured behind the scenes. (For example, there was no "trading bot".)
Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - Cloud Token Wallet Service
Date	Event	Description
December 1st, 2019 12:00:01 AM	First Event	This is an expanded description of what happened and the impact. If multiple lines are necessary, add them here.

Total Amount Lost

The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

It is unknown how much was recovered.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

Prevention Policies

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.