Wallet Scams In Cryptocurrency Realm In The First Half Of 2019 (Series II), System Upgrade, Being Hacked, Leader Arrested…

5 min readAug 23, 2019


In the first half of 2019, some digital wallets, exchanges, and project parties absconded and only the four digital wallets, including Plus Token, MoreToken, Wave Field Super Community, TokeStore mentioned in the previous article have cheated by over 36 billion RMB. This article will continue to list wallet scams.

№1 Sum Token

Collapse Time: March 10, 2019

Amount Involved: More than 400 million RMB

Number of Investors Involved: Unknown

Review of the whole event: On March 10, it was suddenly reported that two Chinese leaders of Sum Token were arrested and Beijing police investigated the case. The official website of Sum Token was closed, announcing that the platform was maliciously attacked and some main services would be suspended. Since then, the SUT plummeted and the wallet cannot be logged in. It is estimated that the value of ETH stored on the platform is as much as 400 million RMB, let alone the unknown amount of BTC and native tokens.

Sum Token claimed to be interoperable with imToken technology to ensure asset security. It only did data synchronization or data interface, and this function attracted a large number of users. Besides, the native token SUT has been launched by many exchanges in a short time, including the hot exchange — FCoin. However, though such promotion points strengthened the investors’ confidence, they also served as traps that cheat a lot of investors.

SumToken can be described as the upgrade of Ponzi Scheme, on where can investors deposit and trade digital coins, and finally be cheated by scams.

№2 Trdot Wallet

Collapse Time: February 10, 2019

Amount Involved: More than 130 million RMB

Number of Investors Involved: Unknown

Review of the whole event: In February, the Trdot Wallet announced that the ATT main network would be upgraded for about 15 days, and withdrawal services would be suspended during the period. However, after the system resumed on Feb. 26, the deposit & withdrawal service was still unavailable, and was even closed on Feb. 27. Until March 4, investors were told to exchange TRX to ATT and the conversion will be started in the early hours of March 8. When the user waited for the withdrawal of ATT, the price of which suddenly fell from $0.0316 to $0.0014, plummeting 95.5%.

Besides, from March 18, the Trdot Wallet transferred the TRX worthy of $18 million from the original wallet address to the newly-created wallets without informing users, and then transferred 40 million TRX to Binance, then there were many large transfers, which appeared to be dumping and cashing out. As of now, an approximate of 514 million TRX were in the Trdot Wallet, and the official website cannot be accessed.

Trdot Wallet, a controversial TRON Wallet, claimed to be backed by TRON. Its high-interest return promise attracted a lot of investors. However, similar to Wave Field Super Community, both of them fleeced investors in the name of TRON, and TRON’s ambiguous attitude also made investors unclear about being cheated.


Collapse Time: June 10, 2019

Amount Involved: More than 50 million RMB

Number of Investors Involved: Unknown

Review of the whole event: The GODX wallet, claimed to have been created by Dogecoin team, was built to provide high interests for investors with the highest monthly interest rate up to 30%. In March, without any announcement, the app suddenly displayed a white screen and cannot be opened. The officials did not make any reply until the user questioned. However, as of now, there is still no latest announcement and the wallet is suspected of absconding.

Before this, some media have warned that instead of used for arbitrage, a total of 55,000 ETH in DOGX Wallet worthy of 50 million RMB have been transferred to Gate.io for cashing out. This is considered as a prelude for the later run.

With the huge reputation of Dogecoin in the industry, DOGX used the means of famous team creation, high interest rate, and stable profit to attract investors to deposit highly recognized digital assets such as Dogecoin and Litecoin, and then returned the interest with the unnamed DOGX token, the using of which made a lot of investors being scammed.

Wallet Scams Are Continuing

The digital asset wallets that run in the first half of 2019 is much more than the typical ones listed in the article. Other wallets such as MGC Wallet, Angel Token, MGC Wallet, Wo Token, Super Token, World Token, LNKO Wallet, etc. With the excuse of upgrading or being stolen, delaying, restriction and even refusing users to withdraw, they have in fact absconded or collapsed.

Insiders said that the price difference between the major platforms is far less than that of the early stage of the industry, and the profit made by wallet arbitrage is limited. Any claims of “high profit” or “stable earnings” is actually the Ponzi Scheme, these wallets are maintained by attracting new investors and once there is no fresh blood came in, they will abscond or collapse instantly. You are lured by the high-interest returns, and they spare no efforts to cheat all your principal.

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