A Chinese EOS-based wallet app reportedly shuts down, leaving $52M in user funds inaccessible


EOS Ecosystem, a wallet app that has promised high returns for users’ EOS deposits, has shut down the platform, and its creators appear to have run away with approximately $52 million user funds, according to a local report.

On Monday, investors reported being unable to access their accounts via EOS Ecosystem's app. According to Chinese blockchain media outlet ChainNews, most of the funds have also been removed from the service's account.

Ever since development studio Block.one released the open-source blockchain software EOSIO in 2018, several firms have carried out investment scams centered around the blockchain’s native cryptocurrency EOS. EOS Vote, EOSCUBE, and EOSFIN, for example, all revealed themselves to be fraudulent platforms. 

ChainNews previously reported that EOS Ecosystem does not have an EOS node as it claims and has been running a pyramid scheme. In 2019, the project was sued in a local court in Tengzhou, China, for allegedly carrying out a pyramid scheme involving over 33 million EOS tokens (around $81 million at press time). 

Related Reading

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Layer-1 Platforms: A Framework for Comparison

The Block Research was commissioned by Algorand to create Layer-1 Platforms: A Framework for comparison, which provides a “look under the hood” at seven platforms: Algorand, Avalanche, Binance Smart Chain, Cosmos, Ethereum/Ethereum 2.0, Polkadot, and Solana. We assess their technical design, related ecosystem data, and qualitative factors such as key ecosystem members to get an understanding of how they differ. Having done this analysis, we draw some insights for what the future of the broader smart contract landscape could look like for years to come. 
Read Full Story
Aug 11, 2021, 5:18PM UTC