Tuesday, February 11, 2025

$2B Worth of ETH Moved from Plus Token Ponzi-Linked Wallet After 3.3 Years

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Originally published on: August 07, 2024

In a surprising turn of events, Lookonchain, an on-chain analyst, has reported a significant movement of Ether, valued at $2B, from cryptocurrency wallets that had been inactive for over three years. The latest revelation indicates that up to 789,533 ETH were associated with the infamous Plus Token Ponzi scheme and had been sitting dormant since April 2021.

**Tracking the Plus Token Ponzi 2 Wallet**

The dormant funds linked to the “Plus Token Ponzi 2” wallet were observed to have been dispersed to numerous smaller wallets back in 2020. This development has raised eyebrows in the cryptocurrency community, especially considering the shady history of the Plus Token scheme.

**Chinese Authorities Seize Crypto Assets**

Back in the day, Chinese authorities conducted a crackdown on the Plus Token scam, resulting in the seizure of approximately $4.2 billion in various cryptocurrencies. The digital assets seized included a vast amount of Bitcoin, ETH, XRP, Dogecoin, Bitcoin Cash, Litecoin, and USDT, among others.

**Escalating Value of Seized Assets**

While the total value of the seized tokens was pegged at around $4.2 billion in late 2020, the current value has surged to a staggering $13.5 billion due to the spike in asset prices. This dramatic increase in value has put the spotlight back on these previously dormant wallets and the potential impact of releasing these funds back into circulation.

**Market Implications and the Waiting Game**

There are concerns within the crypto market about the repercussions of a potential sell-off of the seized funds by Chinese authorities. Such a move could potentially trigger panic among investors and have far-reaching effects on the market. As of now, however, the actual outcome remains uncertain.

**ETH Outflows and Market Response**

The movement of ETH from the dormant wallets commenced on August 7, with ETH’s price hovering around $2,474 at the time of writing. The subtle increase in price indicated some activity following the outflows from these wallets, but the market response is yet to be fully realized.

**Legal Actions Against Crypto Ponzi Schemes**

In a related development, a district judge in Illinois recently ruled in favor of the Commodity Futures Trading Commission (CFTC) by categorizing two altcoins as commodities in a crypto Ponzi scheme case. The scheme, which promised investors steady returns, defrauded victims by misusing digital asset commodities.

**Stay Informed to Avoid Falling Victim**

With the rise of complex Ponzi schemes and fraudulent activities in the crypto space, it is crucial for investors to stay vigilant and informed. Being aware of such developments can help prevent falling prey to scams that promise unrealistically high returns.

**Conclusion**

The movement of $2B worth of ETH from dormant wallets connected to the Plus Token Ponzi scheme has sent ripples across the crypto community. While the situation continues to unfold, all eyes are on the potential impact on the market and the actions of the Chinese authorities regarding the seized assets. Stay updated on the latest insights to navigate the crypto landscape safely and securely.

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