PlusToken-Linked Wallets Move 7,000 ETH, Raising Concerns About Possible Sale of Seized Assets
- DDDOriginal
- 2024-10-12 13:06:22556browse
This shift has raised alarms, particularly as it suggests the possible sale of a significant portion of the $1.3 billion in ETH that Chinese authorities seized
A portion of the Ether (CRYPTO: ETH) seized by Chinese authorities from the PlusToken scam appears to be shifting again, raising concerns about its possible sale.
ErgoBTC observed the movement of 7,000 ETH from PlusToken-linked wallets on Monday.
“7,000 ETH moved out of PlusToken wallets,” noted the analyst.
The last time a movement of this scale occurred was in 2021, and it preceded the sale of a portion of the BTC seized by the authorities, ErgoBTC added.
“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.”
ErgoBTC's analysis suggests that the recent ETH movement could indicate a large-scale sale of the remaining seized Ether.
The news of the shifting funds impacted the Ethereum market on Monday, with ETH’s price dipping below the $2,400 mark.
ErgoBTC noted that if the remaining 542,000 ETH, valued at over $1.3 billion, are sold, it could lead to further price drops, possibly pushing ETH below the $2,000 level.
PlusToken Scam And Crypto Sell-Offs
The PlusToken scheme, which operated from 2018 to 2019, is among the largest crypto scams in history.
It defrauded around 2.6 million users and led to the seizure of nearly $4 billion in cryptocurrencies, including BTC, ETH, DOGE and XRP, by Chinese authorities.
The scam’s operators were arrested, but the legal fallout continues to affect the market.
In 2019 and March 2020, a large portion of the seized Bitcoin, amounting to about $1.3 billion, was sold, causing significant volatility in the market.
However, the Ethereum holdings remained mostly untouched until the summer of 2021, when a third of the 840,000 ETH was transferred to the lesser-known exchange Bidesk.
Following this, the remaining ETH remained蛰伏 across various mixing addresses until early August 2024, when 542,000 ETH was consolidated into 294 new addresses, ErgoBTC's analysis showed.
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