Ethereum Wallets Linked to PlusToken Scam Reactivate
In a surprising turn of events, several Ethereum wallets that had remained inactive for over three years have started to move large amounts of ETH (Ethereum). These wallets, connected to a notorious $4 billion crypto scam, have been the subject of intense scrutiny as investors fear the impact of a potential market sell-off.
Dormant Wallets Move Billions in Ethereum
According to Lookonchain, a prominent on-chain tracking firm, these wallets, believed to be linked to the PlusToken Ponzi Scheme, began transferring significant amounts of ETH. Initially, it was reported that over 700,000 ETH, valued at approximately $2 billion, was on the move. However, this figure was later corrected, revealing a much smaller amount. PlusToken, a fraudulent trading platform, was dismantled in 2020, leading to the seizure of 833,083 ETH by Chinese authorities.
Impact on Ethereum Market
The revelations about these wallets have prompted concerns among investors, worried about selling pressure on Ethereum, which is currently in a recovery phase. However, recent analyses indicate that the actual amount of ETH being moved is significantly less than initially feared. EmberCN, an on-chain data analyst, clarified that much of the ETH had already been transferred to exchanges like Bidesk and subsequently sold in 2021. Only a small portion of the original ETH remains unsold.
Current Market Movements
Despite the clarification, Ethereum's market experienced a noticeable impact, with prices dropping by 6.5% in a short period. This decline also coincided with significant ETH sales by Jump Trading, a Chicago-based trading firm, which liquidated $29 million worth of ETH and prepared to sell additional holdings. As of the latest reports, ETH prices have adjusted from a range of $2,500-$2,540 to around $2,370, marking a notable but not catastrophic decrease.
These developments underscore the ongoing sensitivity of the cryptocurrency market to large movements of digital assets, particularly those linked to illicit activities. Investors are advised to stay informed and cautious as the situation evolves.
