$50 Million Exploited From Users in Chinese EOS Ecology Scam

EOS Ecology, a Chinese EOS based app has exploited its users on the promise of high yields on their investments while claiming links with Starteos, an EOS block producer. At the time of writing, the estimated amount swiped from users who were mostly newbies is $50 million, almost 200,000 EOS tokens.

The exploitation act dawned on its users when they were unable to access their holdings through withdrawals as they had been blocked. The scheme had at first disbursed user profits in a time-bound manner while it worked assiduously to increase its client base. However, it became visible that it could not sustain this any further, it was only for a while as it shut down inevitably.

The crypto wallet app was able to perpetuate its act by claiming links to Starteos, a company committed to promoting the blockchain industry. Starteos.io is the biggest and most reliable block producer on EOS, which gave credence to the Ponzi scheme supposed “authenticity”.

In 2018, when Starteos launched an auction platform for EOS users to generate accounts ending in .io, the Ponzi scheme, however, took advantage of this to quickly generate an account which if examined in EOS block explorer since it was generated from Starteos will appear linked to EOS block pool. However, under the guise of being linked to Starteos.io, EOS ecology had an account name of w.io instead.

Furthermore, the scheme joined the Starteos WeChat group to prey on unsuspecting group members. While the latest findings have led many to conclude that EOS ecology is a Scam and a Ponzi scheme.

Starteos Debunked EOS Ecology Association Claims as Evidence Reveals the Latter to Be a Fraud

On March 14, Starteos debunked the connection claims of EOS Ecology as it told its users that there wasn’t any correlation between Starteos and w.io which was linked to EOS Ecology. The EOS block producer which spoke through one of its executives said its attention had been drawn to the activities of the scheme since January.

The recent findings reveal that the project has been transferring funds on the network through Huobi dummy accounts. EOS activity indicated that funds linked to EOS Ecology and w.io have been transferred basically to accounts name “huobidevice1,” “huobidevice2,” “huobidevice3,” and “huobidevice5” which were created by user “coldlaregist.” Huobidevice5 and Huobidevice3 received a substantial amount of EOS tokens and were declared after an Huobi verification to be unreal Huobi addresses, claiming the Huobi account is “huobideposit” instead.

In a 26 paged micropayment form, it was evident that all the transfers were made from what seemed to be dummy accounts from users such as “snailpay1131,” “zbeosforsend,” “vuniyuoxoeub,” and the rest.

However, EOS may record negative price action due to the magnitude of the scam in a scenario the exploiter tries to sell off the tokens. But the fact remains that action may seem impossible without attention being drawn to such nefarious activity.

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