PlusToken Moves 7,000 Ether to Exchanges: Market Impact Ahead?

sevval10/10/20241 Mins read269

Plustoken Moves 7,000 Ether To Exchanges: Market Impact Ahead?

PlusToken- Major Movement of Seized Ether

PlusToken– On Wednesday, OXT Research analyst ErgoBTC reported that approximately 7,000 ether (valued at $16.7 million) from the notorious PlusToken crypto Ponzi scheme has been transferred to various exchanges. This movement raises concerns about the potential sale of the entire $1.3 billion in ether that was previously seized from the scheme. This activity follows a two-month period during which wallets associated with the PlusToken scheme had remained dormant since 2021.

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ErgoBTC 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.

In early August, the remnants of ETH seized from the multibillion dollar PlusToken scheme awoke on-chain for the first time since 2021.

Over the last 24h about 7k ETH of the remaining 542k ETH ($1.3b) was sent to exchanges indicating intent to begin selling the remaining tokens. pic.twitter.com/tu2o7y4o4L
— ∴FreeSamourai∴ (@ErgoBTC) October 9, 2024

The Background of PlusToken

PlusToken was a significant crypto pyramid scheme that defrauded over 2.6 million investors between 2018 and 2019. In response to the scheme, local authorities confiscated more than $14 billion worth of various cryptocurrencies, including bitcoin and ether. A court document reviewed by ErgoBTC revealed that the seized assets were handed over to Beijing Zhifan Technology Co for liquidation and conversion into cash for restitution purposes.

The analyst highlighted that a substantial portion of the seized bitcoin, estimated at around $1.3 billion, was sold between 2019 and 2020. However, around 542,000 ETH (worth approximately $1.29 billion) remained untouched in numerous mixing addresses until August, when the assets were redistributed to 294 new addresses.

Recent Ether Redistribution

On Tuesday, about 15,700 ETH were transferred from these mixing addresses, employing a process reminiscent of previous transactions in 2020 and 2021. Of this amount, around 7,000 ETH was sent to a select few exchanges, including BitGet, Binance, and OKX.

ErgoBTC stated, Given the recent effort to re-obfuscate the ETH, it is unlikely that the active distribution of the 15.7k ETH moved yesterday is the last of the 540k ETH supply distribution. This behavior introduces an unexpected supply overhang for Ethereum, raising questions about future market impacts.

FAQs

What is the PlusToken scheme?

PlusToken was a Chinese crypto pyramid scheme that defrauded over 2.6 million investors between 2018 and 2019. Authorities confiscated more than $14 billion worth of various cryptocurrencies from the scheme after a crackdown.

Why is the recent movement of 7,000 ether significant?

The transfer of 7,000 ether (valued at $16.7 million) to exchanges raises concerns about the potential sale of the entire $1.3 billion in ether seized from the PlusToken scheme. This movement could introduce a significant supply overhang in the Ethereum market.

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sevval

Şevval has been actively writing since 2022 and is a third-year mathematics student at Ankara University. Her interest in writing is shaped particularly around innovative technologies such as Web3, artificial intelligence, and blockchain. She closely follows developments in these fields and aims to convey complex topics to readers in a clear and engaging manner. She enjoys combining her mathematical knowledge with technology to create content and strives to raise awareness about the digital world of the future.