EOS-Based App Shuts Down, Blocks Users From Withdrawing

An EOS-based wallet app shut down and blocked its users from withdrawing their funds. The analysis shows that the project was moving funds through the network across Huobi dummy accounts as we are reading further in the EOS news.

EOS Ecology was an EOS-based Chinese crypto wallet application that promised huge returns on the users’ holdings. It became clear back on Monday that many of the users couldn’t withdraw their tokens from the wallet app. The amount reached about 200,000 EOS tokens or $50 million at press time.

The users of EOS ecology are unable to withdraw the funds amounting to a total of $50 million and many claims that the project is now a scam or a Ponzi scheme. The wallet lured EOS investors by simply offering high returns on their holdings. With the attractive rates, EOS Ecology also lured investors by claiming it was associated with Starteos. Starteos is among the largest and most trusted block producers of EOS.

The Block producer created an auction platform for all of the EOS users to create accounts that ended in ‘’io.’’ Similarly to web domains, the users can claim an account and if no one contests it in the upcoming 12 hours, the account will be theirs. When examining an EOS Block explorer, the accounts that were created with the Starteos platform will seem linked to the block pool.

This is very important to know because it also seems that the EOS account ‘’w.io’’ is linked to EOS Ecology. The marketing manager of Starteos explained:

 “If [a user bids a] name from us, [people] could see the name is generated under .io. Most [people] know that it’s a normal process to bid a name and register it. But the scammers tell the newbies that, since the name is generated from .io, that means w.io is part of Starteos.”

EOS-based Ecology platform convinced the newcomers that they were very close ‘’friends’’ with Starteos. However, the marketing manager of the platform explained that they first heard about this app in January 2019 since they were present in the WeChat group and tried to scam the group members. The wallet promised high returns and but since they took out little by little, the users didn’t suspect much. Later it became clear that this was not going to be possible in the long term.

The users reported on Monday that they were unable to access their funds. EOS Activity reveals that the funds linked to EOS Ecology have been moved to accounts called ‘’huobidevice1’’ ‘’huobidevice2’’, ‘’huobidevice3’’, and ‘’huobidevice5.’’