cryptonewsland.com
- China has begun selling Ethereum seized from the PlusToken scheme, moving 7,000 ETH to major exchanges this week.
- Analysts expect further sales of the remaining $1.29 billion in ETH, potentially pressuring the cryptocurrency market.
- PlusToken’s seized assets, including Bitcoin, have been liquidated to compensate victims, with Ethereum sales now underway.
China has started liquidating Ethereum (ETH) assets seized from the notorious PlusToken Ponzi scheme. Recently, around 7,000 ETH, worth $16.7 million, was moved to several exchanges.
About 15,700 ETH (worth $1.3 billion) related to the Plustoken scam seized by the Chinese government was transferred from known addresses yesterday, of which more than 7,000 ETH were sent to exchange deposit addresses, according to @ErgoBTC. Similar to the previous pattern of…
— Wu Blockchain (@WuBlockchain) October 10, 2024
This move has triggered concerns about a broader impact on the cryptocurrency market. The transfers occurred after dormant wallets linked to the scheme resurfaced in August 2024.
Analysts Predict Further Ethereum Sales
According to OXT Research, these movements suggest that a full sale of the remaining PlusToken assets is likely. Around 542,000 ETH, worth $1.29 billion, still remains unsold.
This mirrors the pattern seen with Bitcoin, which was also seized and sold by Chinese authorities after the PlusToken scam collapsed in 2019. The ongoing sales could further pressure Ethereum’s volatile market.
Seized Crypto From PlusToken Scam
The PlusToken scam swindled many investors between 2018 and 2019, which resulted in the confiscation of over $14 billion in cryptocurrency, including Bitcoin and Ethereum.
Officials transferred the crypto to Beijing Zhifan Technology, which has been selling them off to provide compensation to the victims. Although the majority of Bitcoin, valued at $1.3 billion, was sold by 2020, most of Ethereum has stayed untouched until now.
Transfers to Major Exchanges
15,700 ETH was transferred from wallets connected to PlusToken on Tuesday. Out of this amount, 7,000 ETH was transferred to leading exchanges such as Binance, BitGet, and OKX. Analysts predict that this signals the start of a bigger sell-off, potentially leading to an influx of more Ethereum into the market in the upcoming months.
It is anticipated that the cryptocurrency market will be impacted greatly by China selling off PlusToken’s Ethereum assets. With more ETH being introduced into the market, there could be a rise in selling pressure that might affect Ethereum prices even more, leading to short-term fluctuations.