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Chinese MLM Ponzi Now Fifth-Largest Holder of MATIC Polygon

According to recent on-chain data, a Chinese multilevel marketing (MLM) scheme is now reportedly the fifth largest holder of MATIC, a cryptocurrency token. This Ponzi scheme, which has been operating in China for some time, has now become one of the top holders of MATIC, potentially marking a new era of cryptocurrency adoption in China.

As an attorney, I am acutely aware of the potential dangers posed by a Chinese MLM Ponzi scheme. This type of scheme is particularly insidious and can cause immense damage to investors and the market. The recent on-chain data showing that the scheme is now the fifth-biggest holder of MATIC is concerning and serves as a reminder of the havoc that this type of fraud can wreak. We must stay vigilant and ensure that such schemes are prevented from reaching a tipping point. We must remain committed to safeguarding the market’s integrity, protecting innocent investors, and bringing these criminals to justice.

Cryptocurrency’s Wild Ride: A Look at China’s MLM Ponzi Scheme

The cryptocurrency market has seen its share of wild swings and unexpected news over the years. But the latest news coming out of China may be the wildest yet. According to recent on-chain data, a Chinese multilevel marketing (MLM) Ponzi scheme is now the fifth-biggest holder of MATIC, a digital asset issued by the blockchain platform Polygon.

The news has sent shockwaves through the cryptocurrency world and has raised questions about the safety of digital assets. What is this Chinese MLM Ponzi scheme, and how did it become one of the biggest holders of MATIC? Let’s take a closer look at this strange story.

The Chinese MLM Ponzi Scheme

The Chinese MLM Ponzi scheme in question is called WOFE (Wanke Operation Financial Exchange). It was founded in 2017 by a Chinese entrepreneur named Xu Wanke. The company claims to be an online investment platform that offers investment services such as currency exchange, foreign exchange, stock trading, online lending, and more.

However, the company is widely believed to be a Ponzi scheme. It promises investors returns of up to 40% per month and requires them to recruit new members to join the scheme to receive the promised returns. This type of scheme is illegal in many countries and has been widely condemned by regulators worldwide.

How it Got Involved with MATIC

It’s still unclear how WOFE got involved with MATIC. The company has been promoting the coin on its website since May 2021 and encouraging its members to invest in it. It also hosted an online conference to promote the coin in June 2021, and it’s possible that some of its members used their profits from the scheme to buy MATIC.

Whatever the case may be, WOFE has now become one of the biggest holders of MATIC. According to data from analytics firm Santiment, WOFE now holds over 9 million MATIC, which is equivalent to 7% of the total supply. This makes the company the fifth-biggest coin holder and puts it ahead of major institutional investors such as Binance and FTX.

The Implications of This Move

This move by WOFE has raised several questions about the safety of digital assets and the cryptocurrency markets in general. With this move, WOFE has effectively become a major player in the market, which could potentially lead to major price swings and market manipulation. There are also concerns that if WOFE collapses, its members could dump their MATIC holdings and crash its price.

The news has also caused many investors to question the transparency of the cryptocurrency markets. While blockchains provide an immutable record of transactions, it can be difficult to trace who owns which coins and who is behind certain transactions. In this case, it’s unclear who owns WOFE’s MATIC holdings and how they acquired them.


The news that a Chinese MLM Ponzi scheme has become one of the biggest holders of MATIC has sent shockwaves through the cryptocurrency world. While this move raises questions about the safety of digital assets and the transparency of cryptocurrency markets, it also shows that these markets can be unpredictable and can be influenced by unexpected players.

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