EOS Ecosystem, a Chinese EOS wallet, has abruptly shut down, apparently absconding with $52 million worth of users’ funds. Chinese media outlet ChainNews on April 20 reported that users were unable to access their accounts, and that most of the funds had been withdrawn.

The report states that the EOS tokens have been transferred to a Huobi account, and also comments on the difficulty for users to retrieve the fund. It also mentions other scams that have been carried out that have involved the EOS token, such as EOSFIN and EOS Vote. This appears to have happened since Block.One, the development company behind EOS, made the blockchain software open-source.

There have been no updates regarding an investigation and no word yet from the authorities. 

EOS Ecosystem has been involved in other incidents. In 2019, it was taken to court in Tengzhou, China for allegedly carrying out a pyramid scheme linked to $81 million worth of EOS tokens. It has also been claimed by EOS Ecosystem that it runs an EOS node, but this is not so, according to ChainNews.