Hundreds of Wallets Move "Large Amounts" of Ethereum
Ethereum Price: $2,397.42 (0.79% increase)
Headlines
- PlusToken Scam: Hundreds of Ethereum wallets linked to the PlusToken scam are moving large amounts of Ether, as identified by Lookonchain.
- Suspicious Wallets: The transactions have been traced back to a wallet named "PlusToken Ponzi 2," which distributed 789,533 ETH in June 2020.
- Seized Assets: These Ether tokens were originally seized by Chinese authorities in November 2020.
- Market Reaction: Immediately following Lookonchain's report on these movements, the Ethereum price temporarily dropped by 2% to below $2,480.
Transaction Details
- Start of Movements: The transfers began early Wednesday morning.
- PlusToken Connection: The wallets are linked to the infamous PlusToken Ponzi scheme that defrauded many Chinese investors.
- Inactivity: The involved Ether tokens had not been moved since 2021.
Background
- PlusToken Scam: The scam affected over 2 million people and resulted in losses amounting to billions of Chinese Yuan.
- Law Enforcement: Chinese authorities sentenced 15 individuals related to the scam to prison terms ranging from two to eleven years.
Unanswered Questions
- Control of Tokens: It remains unclear whether the tokens are still under the control of Chinese authorities.
- Reason for Movements: The reason for the current massive movements of Ethereum wallets is also unknown.
Market Impact
- Price Reactions: The Ethereum price experienced a short-term drop immediately following the Lookonchain news.
- Recovery After Crash: Ethereum had already faced significant losses due to a crypto crash over the weekend and Monday but managed to recover in the interim.
Conclusion
The recent activities of the PlusToken-related wallets raise questions about control and motivation behind these movements. The market reaction highlights investor sensitivity to large wallet transfers and their potential impact on cryptocurrency prices.
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