fbpx

Chinese Authorities’ Seized ETH from PlusToken Scheme Begins to Move


TLDR

  • Approximately 7,000 ETH ($16.7 million) from PlusToken Ponzi scheme moved
  • Movement suggests possible sale of $1.3 billion in seized ETH
  • PlusToken scam defrauded 2.6 million users of nearly $4 billion in crypto
  • ETH price dipped below $2,400 following the news
  • Analyst predicts potential further drop below $2,000 if all seized ETH is sold

In a recent development that has caught the attention of the cryptocurrency community, approximately 7,000 Ethereum (ETH) tokens, valued at $16.7 million, have been moved from addresses linked to the infamous PlusToken Ponzi scheme.

This movement, first reported by crypto researcher ErgoBTC, has raised concerns about a potential sell-off that could significantly impact the Ethereum market.

The PlusToken scheme, which operated between 2018 and 2019, was one of the largest cryptocurrency scams in history.

It managed to defraud around 2.6 million users, resulting in the seizure of nearly $4 billion worth of various cryptocurrencies by Chinese authorities. The seized assets included Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and Ripple (XRP).

According to ErgoBTC, the recent transfer of 7,000 ETH from PlusToken-linked wallets marks the first significant movement since 2021.

This activity appears to follow a pattern similar to previous attempts to obscure the sale of seized assets. The analyst noted,

“Current ETH distribution follows the same attempted obfuscation pattern as that of the BTC in 2019, with a likelihood of full sale of the $1.3 billion of ETH in the future.”

The news of this movement has already had an impact on the Ethereum market. Following the announcement, ETH’s price dipped below the $2,400 mark, indicating growing concerns about additional sell pressure.

If the remaining 542,000 ETH, worth over $1.3 billion, were to be sold, ErgoBTC predicts that Ethereum’s price could potentially drop below the $2,000 threshold.

This is not the first time that the sale of seized assets from the PlusToken scheme has affected the cryptocurrency market.

Between 2019 and March 2020, a significant portion of the seized Bitcoin, amounting to approximately $1.3 billion, was sold, causing notable volatility in the market.

The Ethereum holdings, however, remained largely untouched until the summer of 2021, when about a third of the 840,000 ETH was transferred to the less popular exchange Bidesk.

Following this, the remaining ETH sat dormant across various mixing addresses until early August 2024, when 542,000 ETH was consolidated into 294 new addresses, according to ErgoBTC’s findings.

On-chain analysis data shows that over 2,800 ETH from various wallets linked to the seized assets was placed in a single address, further fueling concerns about a large-scale sell-off.

This consolidation of funds has heightened speculation about the potential market impact if a significant portion of the seized ETH is sold.





Source link

You might also like

Comments are closed.