EOS Wallet Developers Have Run Away With Users’ Money

EOS Ecosystem, a wallet application that promised high returns on EOS user deposits, has closed the platform. Its creators ran away with $52 mln of user funds.

On Monday, investors said they could not access their accounts through the EOS Ecosystem App. According to the Chinese blockchain media outlet ChainNews, the developers have already withdrawn most of the funds from the service account.

Since the Block.one development studio released the open-source EOSIO software in 2018, several firms have been engaged in investment fraud focused around the EOS blockchain. For example, EOS Vote, EOSCUBE and EOSFIN have performed as fraudulent platforms. In 2019, the EOS Ecosystem project sued for running a pyramid scheme that grabbed more than 33 mln EOS tokens. At the moment, there is no information about the investigation or prosecution.

Image courtesy of Crypto News Flash