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PlusToken Ponzi Scheme Wallets Transfer Large Amounts of ETH, Sparking Market Concerns
Explore how the PlusToken Ponzi scheme’s wallets are transferring large amounts of ETH, raising significant concerns in the cryptocurrency market. Discover the implications for investors and the potential impact on Ethereum’s price.
Recent Movement of PlusToken Ponzi Scheme Funds Raises Concerns
On Wednesday, a significant number of wallets associated with the notorious PlusToken Ponzi scheme began to transfer thousands of ether (ETH), igniting discussions among cryptocurrency market participants on social media platform X about potential sell pressure in the near future.
According to on-chain data, over 2,800 ETH from various wallets linked to the seized funds were consolidated into a single wallet identified as “0xf46847fa42fd9dd52737f3d25b8659cceba80eeb.” CoinDesk confirmed these wallet movements utilizing the on-chain analysis tool Arkham. The ether that had remained dormant for an extended period was traced back to a wallet that was involved in the seizure of approximately $2 billion worth of ETH back in 2020.
On-chain tracking firm LookonChain reported on X, stating, “Hundreds of wallets that have been inactive for 3.3 years are now transferring large sums of $ETH, possibly amounting to 789,533 $ETH (approximately $2 billion). We have identified that these funds originated from the wallet labeled ‘Plus Token Ponzi 2.’”
In November 2020, Chinese authorities executed a massive operation, seizing nearly $4 billion worth of various cryptocurrencies, including ETH, bitcoin (BTC), dogecoin (DOGE), and xrp (XRP) from the PlusToken Ponzi scheme operators. This action came months after the arrest of 27 individuals believed to be masterminds behind the scheme. At its peak, the Ponzi scheme reportedly expanded to over 3,000 layers, defrauding more than 2 million investors by leveraging cryptocurrencies as a means of attracting and managing funds.