TLDR
- As much as $1.3 billion in Ethereum from the PlusToken scam could hit the market soon
- 7000 ETH, equating to $17.2 million, has already been sent to various exchanges
- Running from 2018 to 2019, PlusToken lured in about 2.6 million individuals in China
- Chinese officials confiscated various digital currencies, including a notable percentage of Bitcoin's entire circulation
- The prospective sale might heighten sell-off pressure on Ethereum
A substantial portion of Ethereum, worth approximately $1.3 billion, seized from the notorious PlusToken scam is anticipated to be offloaded on crypto trading platforms.
This situation has captured the interest of market experts and investors, as it might influence Ethereum's pricing and the broader market conditions.
PlusToken, a deceptive scheme in China between 2018 and 2019, enticed about 2.6 million customers before being dismantled by officials.
During the intervention, law modules confiscated large quantities of different virtual currencies such as Ethereum, Bitcoin, etc.
Based on recent blockchain analysis by OXT Research, it appears that some of these assets have begun transitioning.
A cryptic analyst, Free Samourai, has indicated that approximately 7000 ETH, valued at $17.2 million, has moved to exchanges like BitGet, Binance, and OKX, hinting at a plan to initiate token sales.
Earlier in August, the dormant ETH stolen within the multibillion-dollar PlusToken fraud showed its first signs of movement on the blockchain since 2021.
In the past 24 hours, roughly 7k ETH of the remaining 542k ETH, valued at $1.3 billion, was sent to exchanges, suggesting potential sales. pic.twitter.com/tu2o7y4o4L
— ∴FreeSamourai∴ (@ErgoBTC) October 9, 2024
The entire quantity of Ethereum from PlusToken potentially up for sale is estimated at 542,000 ETH, valued around $1.3 billion.
This whopping figure has raised alarms about its potential market consequences if put on the market.
Blockchain analysis entity AMLBot corroborated OXT Research’s insights through their independent probe. An AMLBot spokesperson pointed out that the remaining Ethereum was distributed among numerous wallets and began activities in August, consolidating into 294 separate addresses over time.
The transport of these funds coincides with a phase of inactivity. In early August, the Ethereum confiscated assets from PlusToken exhibited blockchain activity for the first time since 2021.
This resurgence of previously non-active funds has piqued the curiosity of market observers.
Calvin Ferreira, leading ecosystem and growth at BitcoinOS, a Bitcoin layer-2 network, commented on potential market effects, noting,
\"Considering the immense total sum of about $1.3 billion, any sizeable liquidation could significantly escalate selling pressure, causing a further dip in Ethereum’s valuation.\"
Anmol Jain, who heads investigations at AMLBot, shared similar apprehensions, implying that these movements might increase sell pressure, negatively affect market sentiment, and possibly lead to reduced liquidity.
He also added that the actual market repercussions would hinge on numerous aspects, including ETH's volume, timing of transfers, and the overarching market scenario.
It's noteworthy that the PlusToken case resulted in a historic volume of cryptocurrency confiscations.
Chinese law officials seized roughly 1% of Bitcoin's entire supply, alongside considerable volumes of other cryptocurrencies like over 830,000 ETH, 1.4 million LTC, 27 million EOS, among others.
In 2020, six members involved with PlusToken were prosecuted by Chinese authorities.
Court documents from then reveal that the seized assets were transferred to Zhifan Technology, Beijing, for liquidation, intending to compensate the scheme's victims eventually.
According to OXT Research, it's inferred that the captured Bitcoin got sold on exchanges, some Ethereum got liquidated, and the legacy 542,000 ETH remains.
As per the latest stats, Ethereum's price dipped slightly by 1.5% in the last day to about $2,448. Nevertheless, it remains steady over the last week as per the CoinGecko.
