- Over 7,000 ETH from PlusToken Ponzi was transferred to exchanges, signaling a possible sell-off of $1.3B in seized ether.
- Analyst ErgoBTC noted 15,700 ETH was moved from dormant wallets, with 7,000 ETH sent to major exchanges like Binance and OKX.
- PlusToken’s $1.3B worth of ether could flood the market, raising concerns about increased supply and impact on Ethereum’s liquidity.
About 7,000 ETH (worth $16.7 million) tied to the infamous PlusToken Ponzi scheme has been transferred to various crypto exchanges. This action comes months after wallets connected to the scam, which had been dormant since 2021, reawakened earlier in August.
According to data from OXT Research analyst ErgoBTC, these transfers indicate a potential sell-off of the remaining $1.3 billion in ether seized from the scheme. The PlusToken operation defrauded millions of users, leading to the confiscation of billions of dollars in cryptocurrencies by Chinese authorities.
ETH Seized in PlusToken Case Moves After Dormancy
After years of inactivity, the ether seized from the PlusToken scam resurfaced on-chain in August 2023. PlusToken was one of the largest crypto scams, amassing more than $14 billion worth of assets before a crackdown by Chinese authorities.
While much of the Bitcoin tied to the scheme had been sold between 2019 and 2020, the ether remained untouched until recently. Approximately 542,000 ETH, equivalent to $1.3 billion, was scattered across thousands of addresses. This pattern mirrored past efforts to obscure transactions, much like when BTC was distributed and sold in earlier phases.
Similar Transaction Confusion Seen with ETH Sales
ErgoBTC noted that the movement of ETH followed the same confusion tactics as earlier BTC sales. In the latest transfer, about 15,700 ETH were shuffled across addresses, with around 7,000 ETH landing in major exchanges, including BitGet, Binance, and OKX.
These movements have raised concerns about the potential for a full sell-off. The redistribution of funds resembles methods used in 2020 and 2021, when large sums of Bitcoin from the scheme were moved, mixed, and eventually sold.
$1.3B in ETH Could Enter Market
The sale of this remaining Ether presents a new challenge to the market. ErgoBTC emphasized that the movement of ETH creates an unexpected supply overhang for Ethereum. Given the scale of the assets involved, more sell-offs could potentially follow, impacting liquidity and supply on exchanges.
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