PlusToken’s $16M ETH Transfer Sparks Sell-off Concerns, Price Drop

A significant transfer of Ethereum (ETH) linked to the notorious PlusToken Ponzi scheme has raised concerns about a potential sell-off of the entire $1.3 billion in seized ether. According to OXT Research analyst ErgoBTC, around 7,000 ETH (valued approximately at 16.7 million) has been moved to exchanges.

JUST IN: $1.3B IN $ETH RELATED TO PLUSTOKEN SCAM SEIZED BY CHINA HAS BEEN MOVED FROM KNOWN ADDRESSES , WITH 7,000 $ETH SENT TO EXCHANGE ADDRESSES ~ ERGOBTC

— BSCN Headlines (@BSCNheadlines) October 10, 2024

The move has sparked fears of significant market disruption, as the Chinese government may sell the remaining 542,000 ETH. This would echo past actions, as previous distributions have been linked to similar sell-offs, particularly during the 2019 Bitcoin (BTC) liquidation.

Recent Activity and Market Impact on Ethereum (ETH)

Wallets associated with the PlusToken scams have recently become active after a period of dormancy since 2021. The transfer has already pressured the Ethereum price, causing it to dip below $2,400, with a recent 1.8% decrease in the value. Analysts fear that continued movements could push prices further down, possibly below $2,000.

ETH 24 Hours Chart (Source CoinGecko)

The recent ETH distribution follows patterns seen with BTC in 2019, suggesting a deliberate attempt to disguise the source of the funds before selling. This has led experts to speculate that the Chinese government may be preparing to offload the remaining seized assets.

PlusToken Scheme Background

The PlusToken Scheme defrauded 2.6 million users between 2018 and 2019, leading to a massive seizure of nearly $4 billion in crypto by Chinese authorities, including ETH, BTC and other altcoins.

The potential sell-off has raised concerns among investors with many fearing a significant impact on the cryptocurrency market. As the situation unfolds, market participants will be closely watching for any further developments.

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