A recent movement of funds from wallets linked to the $4.2 billion PlusToken Ponzi scheme has raised concerns about potential market pressure in the crypto market.
Movement of Funds Tied to Seized Wallet
On Wednesday, thousands of ether (ETH) were moved from dormant wallets tied to the seized wallet to a single wallet. The origin of these funds was traced back to a wallet involved in a $2 billion seizure in 2020. This development has sparked chatter among crypto market participants on X about potential sell pressure.
Movement of Funds Tracked Using On-Chain Data
According to on-chain data, over 2,800 ETH from various wallets linked to the seized wallet were moved to a single wallet with the address "0xf46847fa42fd9dd52737f3d25b8659cceba80eeb." This movement of funds was tracked using the on-chain tool Arkham.
Verification of Wallet Movements
CoinDesk verified the wallet movements using the on-chain tool Arkham. The ether in the previously dormant wallets was traced back to a wallet that seized $2 billion worth of ETH in 2020.
Background on PlusToken Ponzi Scheme
In November 2020, Chinese authorities seized almost $4 billion worth of various tokens, including ETH, BTC, DOGE, XRP, among others, from operators of the PlusToken Ponzi scheme. This seizure came months after the arrest of 27 alleged masterminds behind the Ponzi.
At its peak, the Ponzi had grown to over 3,000 layers and had fleeced more than 2 million investors using cryptocurrencies as a funding channel. The funds seized from the operators were valued at $4 billion, with corrections made to reflect this figure.
Potential Impact on Crypto Market
The movement of funds tied to the PlusToken Ponzi scheme has raised concerns about potential market pressure in the crypto market. As these funds are moved, it is possible that they may be sold, putting downward pressure on the price of ETH and other cryptocurrencies.
This development highlights the need for increased vigilance among investors and market participants to monitor on-chain activity and potential sell-offs. The movement of these funds also underscores the importance of due diligence when investing in cryptocurrencies and the risks associated with them.
Conclusion
The recent movement of funds tied to the PlusToken Ponzi scheme is a concerning development that highlights the ongoing risks associated with cryptocurrency investments. As market participants continue to monitor this situation, it is essential to remain vigilant and take necessary precautions to mitigate potential losses.
Additional Resources
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