The SEC's twenty-four page Ponzi lawsuit against WCM777 claims the company facilitated a "secondary market" for investor points. Defendants estimate $890 million of these points traded. However, the SEC alleges WCM777 only took in $65 million in actual cash from investors.
These points, known as "Kingdom Points," gave investors rights to receive or convert into stock in companies WCM777 claimed it was bringing to market. Investors converted real money into these virtual points on the company's Kingdom Trade platform. The $890 million in alleged trades represents virtual, compounded "monopoly money" within WCM777's Ponzi investment scheme, not actual cash intake.
WCM777 could track real money being converted into "Kingdom Points." But a method for investors to withdraw "Kingdom Coins" into real money was never fully implemented. This failure created a critical bottleneck for participants trying to cash out.
CEO Ming Xu initially hired EuroWallet to provide e-wallet services for his Kingdom Trade exchange, branding it "Kingdom Coin." Xu abandoned the payment processor as regulatory scrutiny on WCM777 intensified. EuroWallet found itself without direction or support for the platform.
EuroWallet CEO Emanuel Martins announced the shutdown of Kingdom Trade on the Kingdom Coin website two weeks ago. Martins stated that EuroWallet is responsible for KingdomPay's operation, striving for smooth business integration. He noted, "sometimes, we face challenges beyond our control that have nothing to do with our technology or our professional IT personnel."
Martins directly attributed the shutdown to Global Unity, also known as Kingdom777. "They have failed to meet their responsibility to us time and time again," he wrote. EuroWallet personnel met with Global Unity management, urging them to implement a payout system held by them for over five months. Despite an agreement, Global Unity did not follow through.
The payout system is crucial for all Global Unity users to receive bonuses and commissions. Martins concluded, "Due to Global Unity's unwillingness or inability to keep their part of the agreement, we have no choice but to shut-down the operation."