On May 14, the high-profile "WoToken" pyramid scheme case went to trial at the Binhai County People's Court in Yancheng City. Six defendants—Gao Yudong, Li Qibing, Wang Xiaoying (formerly Wang Xiaoping), Tian Yongbo, Li Guomin, and Tang Xiaohua—faced separate charges including organizing and leading a pyramid scheme, money laundering, and harboring a criminal.
According to the China Anti-Pyramid Scheme Network, around August 2018, Gao Yudong, Li Qibing, Wang Xiaoying, and Liu Liangting conspired to create the "WoToken" platform to run an online pyramid scheme. Gao Yudong was tasked with recruiting technical staff to build and maintain the platform; Li Qibing and Wang Xiaoying led its online and offline promotion; while Tian Yongbo managed the custody of cryptocurrencies on the platform.
Operating entirely online and spreading across mainland China, the "WoToken" platform had no legitimate business. It falsely advertised cryptocurrency appreciation services and promoted a non-existent "Apollo Intelligent Arbitrage Robot." To activate this so-called robot, members were required to deposit a minimum amount of cryptocurrency, with promises of high static returns.
The scheme also relied on a multi-level referral structure. Members formed hierarchical upline-downline relationships, with uplines earning commissions based on the number and tier of members they recruited.
Forensic appraisal revealed that between July 2018 and October 8, 2019, the "WoToken" platform amassed 715,249 members across 501 levels. During this period, it absorbed over 286 million USDT, 46,000 BTC, 2.039 million ETH, 292,000 LTC, 56,000 BCH, and 6.841 million EOS. Valued at cryptocurrency prices on the day the case was filed, these assets were worth over RMB 7.769 billion.
On the afternoon of October 30, 2019, Li Guomin knowingly assisted Li Qibing in transferring and concealing 49,700 ETH—cryptocurrency obtained through criminal activity—valued at over RMB 64.43 million.
Starting in August 2019, Tang Xiaohua, fully aware that Wang Xiaoying was a fugitive wanted by authorities for her role in the "WoToken" pyramid scheme, provided her with shelter for several days until police apprehended her.
Gao Yudong and Tian Yongbo Have Prior Convictions
Gao Yudong was previously sentenced to ten years in prison and fined RMB 20 million for illegal business operations by the Zhoucun District People's Court in Zibo, Shandong, on October 3, 2009. He was released on May 30, 2014.
Tian Yongbo was sentenced on March 19, 2010, by the same court to three years in prison, suspended for five years, and fined RMB 1 million for money laundering.
Prosecution’s Sentencing Recommendations
The court found that defendants Gao Yudong, Li Qibing, and Wang Xiaoying used the platform's fake cryptocurrency services as a pretext to charge membership fees, organized participants into a hierarchy, and used recruitment numbers and investment amounts to calculate rebates—thereby encouraging further recruitment, defrauding victims, and disrupting economic order.
Gao Yudong was responsible for building and maintaining the platform. Wang Xiaoying and Li Qibing handled promotion. Tian Yongbo, aware of the scheme's nature, managed its funds. With clear facts and solid evidence, all are to be held criminally liable for organizing and leading a pyramid scheme.
Li Guomin knowingly helped launder criminally-derived cryptocurrency and is to be held liable for money laundering.
Tang Shaohua knowingly harbored a fugitive and is to be held liable for that offense.
As Gao Yudong committed a new crime punishable by imprisonment within five years of completing a prior sentence, he is considered a recidivist and faces a heavier punishment.
Gao Yudong denied the main facts and charges during the trial, so his plea was not accepted. The prosecution recommends a sentence of 9 to 11 years in prison, plus a fine.
Li Qibing confessed after his arrest, pleaded guilty, and proactively cooperated with authorities to return illicit gains, warranting leniency. The prosecution recommends a six-year prison term, plus a fine.
Wang Xiaoying confessed, pleaded guilty, and returned part of the illicit gains, also warranting a mitigated sentence. The prosecution recommends six years and six months in prison, plus a fine.
Tian Yongbo played a secondary role in the joint crime and may be treated as an accessory for a lighter sentence.
After his arrest, he confessed to the main facts and pleaded guilty. The prosecution recommends two years and six months in prison, plus a fine.
Li Guomin confessed fully and pleaded guilty. The prosecution recommends a three-year prison term, plus a fine.
Tang Xiaohua turned himself in, confessed, and pleaded guilty. The prosecution recommends a six-month prison sentence.
Given the case's complexity and the number of individuals involved, the trial lasted over six hours before the court adjourned.