New York, Saturday, October 12, 2024-China may soon sell 542,000 ETH, valued at $1.3 billion, seized from the PlusToken Ponzi scheme. Recent reports suggest that 7,000 ETH were transferred to exchanges, indicating potential plans to offload the remaining tokens.
Crypto researcher ‘FreeSamourai’ highlighted this movement on October 10, although a significant selloff has yet to occur. If the stash is sold, it could put downward pressure on Ethereum’s market value.
In early August, PlusToken’s ETH holdings, dormant since 2021, began moving on-chain. The scheme, which started in 2018, amassed vast amounts of Bitcoin and Ethereum before being shut down in 2019. Chinese authorities arrested over 100 individuals and confiscated $4.2 billion in assets, some of which have already been liquidated.
The majority of the seized Bitcoin has been sold, with recent ETH movements suggesting a similar fate. However, analysts remain unsure if these assets have already been sold or are still awaiting liquidation.
The PlusToken Ponzi scheme defrauded investors by promising high-interest crypto accounts. After its collapse in 2019, authorities seized assets, converting them to cash for victims’ compensation. Ethereum markets are now bracing for potential price impacts from the liquidation of the remaining ETH.
