Ethereum (ETH) is facing market uncertainty. $1.3 billion worth of ETH linked to PlusToken Ponzi scheme moves to exchanges.
According to the report, a portion of the massive 542,000 ETH seized from PlusToken has already reached important exchanges such as BitGet, Binance, and OKX.
This development caused a decline in the Ethereum price, Concerns about further decline grow. The crypto community remains concerned about the impact this large-scale liquidation will have on the market.
PlusToken Ponzi: Massive Cryptocurrency Scam Revealed
The PlusToken Ponzi scheme was one of the biggest cryptocurrency scams. Operational from 2018 to 2019. According to reportthis fraudulent scheme lured millions of investors with promises of high returns, but ultimately collapsed.
PlusToken has attracted over 2.6 million participants. Accumulate huge amounts of Bitcoin (BTC), Ethereum (ETH) and other cryptocurrencies.
When the plan was dismantled, Chinese authorities seize over 833,000 ETH and 194,000 BTC from PlusToken wallet.
The seized assets were handed over to Zhifan Technology in Beijing for liquidation, according to the court report. Authorities intended to use the liquidated funds to compensate victims of the Ponzi scheme..
In late 2020, court documents reported that the confiscated assets were converted into cash and the proceeds were handed over to Beijing Zhifan Technology Co., Ltd. to be used as compensation. https://t.co/J3VDiCEZ7E pic.twitter.com/WpyGa7GNBP
— ∴FreeSamourai∴ (@ErgoBTC) October 9, 2024
The sale of these huge holdings has had a negative impact on the cryptocurrency market in the past. This precedent has raised concerns that a similar sale of ETH could put downward pressure on the price.
$1.3 Billion Ethereum Hits Exchanges
Cryptocurrency monitoring group FreeSamourai recently observed that 7,000 of the 542,000 ETH linked to PlusToken were transferred to crypto exchanges. These movements are Authorities are preparing to liquidate the remaining ETH, causing market anxiety.
In early August, the remains of ETH seized from the multi-billion dollar PlusToken scheme woke up on-chain for the first time since 2021.
In the past 24 hours, approximately 7,000 ETH of the remaining 542,000 ETH ($1.3 billion) was transferred to the exchange, which has indicated its intention to begin selling the remaining tokens. pic.twitter.com/tu2o7y4o4L
— ∴FreeSamourai∴ (@ErgoBTC) October 9, 2024
The price of Ethereum is dropped little by little It is trading around $2,400, up 1.47% in the past 24 hours.. With a large portion of ETH still waiting to hit the market, the possibility of further decline looms large.
In another X post, FreeSamourai reported something else. 15,700 ETH was recently moved from a wallet linked to PlusToken. However, this amount has not yet been deposited into the cryptocurrency exchange.
Yesterday, 15.7k ETH was transferred from these last known addresses, starting again a similar commingling process used in 2020 and 2021.
Of the 15,700 ETH, just over 7,000 ETH was transferred to a small number of exchange deposit addresses. pic.twitter.com/K5LF6jODqM
— ∴FreeSamourai∴ (@ErgoBTC) October 9, 2024
FreeSamurai believes that this new move for Ethereum is a sign of more to come. “Given recent efforts to re-obfuscate ETH, this is unlikely to be the last of the 540,000 ETH supply,” FreeSamourai said. said In the report.
Given recent efforts to re-obfuscate ETH, it is unlikely that the 15.7k ETH active distribution moved yesterday is the last of the 540k ETH supply distribution.
— ∴FreeSamourai∴ (@ErgoBTC) October 9, 2024
This further raised concerns about how much seized ETH would end up on the market..
Whenever large amounts of cryptocurrencies are sold, panic selling often occurs, causing market prices to fall. Past sales by government authorities had a similar effect..
For example, the German government liquidation Bitcoin total in July was $3 billion Price reduced from $65,600 to $57,800. Additionally, the US Supreme Court recently issued a decision allowing the sale of 69,370 BTC seized from Silk Road.
United States Supreme Court I decided Do not consider litigation regarding this BTC owner. Therefore, the US government may sell these coins. In the case of Ethereum, the movement of funds related to PlusToken continues, leaving many investors worried.
1 investor said“A potential $1.3 billion selling pressure on ETH from PlusToken and $4 billion selling pressure on BTC from the US government's Silk Road sale. This is why we can't have any good stuff. ”
This is why we can't have good things.
could see $1.3 billion of selling pressure on $ETH From plus token
could see $4 billion of selling pressure on $BTC From US Government Silk Road Sales. Sudge. https://t.co/DZsiG9hhZl— Crypto Condom (@crypto_condom) October 9, 2024
Fears of further significant declines are accurate, but And the consequences could ripple throughout the cryptocurrency ecosystem.
