A Chinese EOS-based wallet app reportedly shuts down, leaving $52M in user funds inaccessible

EOS Ecosystem, a wallet app that has promised high returns for users’ EOS deposits, has shut down the platform, and its creators appear to have run away with approximately $52 million user funds, according to a local report.

On Monday, investors reported being unable to access their accounts via EOS Ecosystem's app. According to Chinese blockchain media outlet ChainNews, most of the funds have also been removed from the service's account.

Ever since development studio Block.one released the open-source blockchain software EOSIO in 2018, several firms have carried out investment scams centered around the blockchain’s native cryptocurrency EOS. EOS Vote, EOSCUBE, and EOSFIN, for example, all revealed themselves to be fraudulent platforms. 

ChainNews previously reported that EOS Ecosystem does not have an EOS node as it claims and has been running a pyramid scheme. In 2019, the project was sued in a local court in Tengzhou, China, for allegedly carrying out a pyramid scheme involving over 33 million EOS tokens (around $81 million at press time).