Published on oktober 11, 2024, 12:42 am
Image source: Fox News
```json [ { "TLDR": "Approximately $16 million in Ether linked to the Plus Token scam has been moving towards exchanges, signaling a potential sell-off. This follows the infamous Ponzi scheme deceiving investors in 2018-2019, leading to Chinese authorities seizing $4.2 billion in cryptocurrency. Despite controversies over the exact amount available for sale, movements totaling 15,700 Ether were recently observed. In another crypto scam case, a self-proclaimed 'Crypto King' was arrested in the Philippines for defrauding investors of $10.5 million USD by targeting media personalities and government officials strategically." } ] ```
Approximately $16 million in Ether linked to the Plus Token scam has initiated movement towards exchanges this week, indicating a potential intention to sell. The Plus Token Ponzi scheme, infamous for deceiving investors between 2018 and 2019, resulted in Chinese authorities seizing a reported $4.2 billion in cryptocurrency, including 833,083 ETH.
According to on-chain analyst ErgoBTC, roughly one third of the seized Ether was liquidated at the now-defunct crypto exchange Bidesk in 2021. Subsequently, the remaining amount – approximately 542,000 Ether spread across numerous wallets – began moving in August and was consolidated into 294 unique addresses.
This recent week observed the transfer of 15,700 Ether, with around 7,000 (equivalent to $16 million) entering different exchanges. Despite these movements, ErgoBTC emphasized that there seems to be further redistribution efforts underway with the remaining 540k ETH supply.
The Plus Token fund transactions have stirred controversies recently as conflicting reports surfaced on the available ETH from the Ponzi scheme ready for sale. While Blockchain tracker Lookonchain initially mentioned that around 789,533 dormant Ether were on the move from Plus Token reserves, further analysis by EmberCN revealed that 268,843 ETH had already been sold at Bidesk last year.
EmberCN also indicated tracking nearly 25,757 Ether sent to various addresses. Concurrently, data platform Arkham Intelligence estimated that approximately 196,000 dormant Ether associated with PlusToken commenced movement within a brief time frame.
ErgoBTC’s analysis aligns with EmberCN’s findings but indicates that scammed Ether exists in more than just a dozen wallets as suggested by Arkham’s preliminary assessment. The movement of $16 million worth of Ether might not significantly impact the cryptocurrency market; however, potential liquidation of the remaining 540k ETH valued at about $1.3 billion could exert considerable selling pressure.
In separate news related to cryptocurrencies scams – a self-proclaimed “Crypto King” was arrested in the Philippines for allegedly defrauding investors of around $10.5 million USD. Termed as “Joshua” during his arrest press conference by Filipino authorities,’ he targeted notable individuals such as media personalities and government officials strategically rather than randomly selecting victims.
This individual was previously detained under another name for engaging in fraudulent activities promising monthly returns through a fake business scheme back in September 2023. Despite initial accusations worth millions leading to his release on bail terms before additional complaints surfaced from more aggrieved parties amplifying his apparent fraudulent practices.
Law enforcement agencies are contemplating filing significant fraud charges against this alleged Crypto King while probing deeper into his illicit operations and addressing concerns surrounding investor protection mechanisms within such financial endeavors prevailing within crypto markets worldwide.
Original article posted by Fox News
