Summary:
- Reactivation: Wallets associated with the Plus Token Ponzi scheme have moved $2 billion in ETH after over three years of inactivity.
- Onchain Analysis: Onchain analyst Lookonchain reported that up to 789,533 ETH linked to Plus Token has been moved for the first time since April 2021.
- Potential Market Impact: The reactivation of these wallets could potentially impact the market, but the extent remains uncertain.
After over three years of inactivity, cryptocurrency wallets linked to the Plus Token Ponzi scheme have moved $2 billion worth of Ether (ETH), potentially impacting the market. Hundreds of cryptocurrency wallets that have remained inactive since April 2021 have suddenly started shifting large amounts of ETH.
According to onchain analyst Lookonchain, up to 789,533 ETH linked to the Plus Token Ponzi scheme has been moved. Onchain tracking revealed that these tokens were associated with the “Plus Token Ponzi 2” wallet, which dispersed the ETH to thousands of smaller wallets in 2020.
During the crackdown on the Plus Token scheme, Chinese authorities seized around $4.2 billion in multiple crypto assets, including 194,775 Bitcoin (BTC), 833,083 ETH, 497 million XRP (XRP), 6 billion Dogecoin (DOGE), and other assets such as Bitcoin Cash (BCH), Litecoin (LTC), and USDT (USDT).
Although the combination of seized tokens was worth around $4.2 billion in late 2020, the total funds are now worth approximately $13.5 billion due to the higher current asset prices.
The reactivation of these wallets and the potential for a sell-off of the seized funds by Chinese authorities could trigger panic in the market. However, the exact impact of this movement on the broader crypto market remains to be seen. Investors and analysts are closely monitoring the situation for any signs of market volatility.
The Plus Token Ponzi scheme was one of the largest scams in the cryptocurrency industry, defrauding investors of billions of dollars. The sudden movement of such a significant amount of ETH has raised concerns and sparked discussions about its potential implications on the market.
As the situation unfolds, it remains crucial for investors to stay informed and cautious. The reactivation of these wallets serves as a reminder of the potential risks and volatility inherent in the cryptocurrency market.
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