EOS Ecosystem crypto wallet closes without returning $ 52 million to users

The team at Chinese cryptocurrency storage app EOS Ecosystem shut down the platform without returning $52 million to customers.

According to ChainNews, investors on Mondaysounded the alarm, because they could not access their savings. Subsequently, it became known that most of the funds were withdrawn by the project team from the platform.

The EOS Ecosystem application wasa wallet that promised its users a high income from placing assets in it, exceeding the level of emission of the PoS cryptocurrency itself. Besides this, the project did not haveown node, which means that it was originally built on the principle of a financial pyramid.

However, users continued to store their funds in wallets even after the team was sued for fraud in 2019.

The functionality of the EOS blockchain platform is potentiallyallows you to freeze stolen assets, but this will be an additional confirmation of the centralization of cryptocurrency and will cause a new wave of criticism. Therefore, in practice, it will be difficult to implement.

In addition to regulators, to combat crime inExchanges are also beginning to join this area, where illegally obtained assets are often laundered. Huobi Group recently launched a tool to track illegal cryptocurrency transactions.

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