Ethereum Seized from PlusToken Ponzi Scheme Could Soon Hit Exchanges
Recent on-Chain Data suggests that approximately $1.3 billion worth of Ethereum seized from the notorious PlusToken Ponzi scheme may soon be making its way to various Cryptocurrency exchanges for sale. The news comes as the Price of Ethereum experiences a slight decline, currently trading at around $2,448, according to data from CoinGecko.
OXT Research's analyst, Free Samourai, revealed via a tweet that a portion of the funds seized from PlusToken has already been transferred to exchanges like BitGet, Binance, and OKX.
Blockchain Analytics firm AMLBot also corroborated the information provided by OXT Research, further solidifying the imminent movement of these seized Ethereum Tokens.
What was PlusToken?
PlusToken was a fraudulent scheme that operated in China from 2018 to 2019, attracting millions of participants. After authorities shut down the operation, a significant amount of Cryptocurrency, including 542,000 ETH, was confiscated.
Recently, there has been a noticeable movement in the previously seized Ethereum from PlusToken. Analysts observed that around 7,000 ETH valued at $17.2 million has already made its way to cryptocurrency exchanges, hinting at a potential cascade of further Token liquidations.
The impending sale of the remaining Ethereum tokens seized from PlusToken has raised concerns within the Crypto community. As the Market anticipates increased sell pressure, it remains to be seen how this influx of tokens will impact Ethereum's price and overall market sentiment.
Experts like Calvin Ferreira from Bitcoin layer-2 network BitcoinOS and Anmol Jain from AMLBot have expressed caution, warning that a substantial liquidation of the $1.3 billion worth of Ethereum could lead to a significant drop in its price and market liquidity.
During the investigation into the PlusToken case, authorities seized a vast array of cryptocurrencies, including Bitcoin, Litecoin, EOS, DASH, XRP, DOGE, BCH, and USDT. Subsequently, several team members were prosecuted in connection with the Ponzi scheme.
Despite efforts to redistribute the seized assets to victims, part of the funds, including the remaining 542,000 ETH, are now potentially re-entering the market, stirring up uncertainty among investors.
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With the looming potential sale of the PlusToken Ethereum, the cryptocurrency market braces for possible turbulence as the industry keeps a close eye on how this influx of tokens will impact prices and overall market dynamics. Stay tuned for more updates as the situation develops.
