790k ETH ($187 Million) Moved by the PlusToken Ponzi Scheme; $67M EOS Moved Yesterday, is XRP Next?
The $2 billion Ponzi scheme PlusToken is back to terrorize the crypto market as it starts moving funds.
Today, 789,534 ETH worth about $187,847,550 USD has been transferred from PlusToken to another wallet, reported Whale Alert, that live tracks large crypto transactions from and to exchanges.
Last time $105 million of these funds were moved was in December.
Move these around for a nominal fee and get traders to sell. https://t.co/VWcSU6ogTv
— Alex (@classicmacro) June 24, 2020
The move has the crypto market anticipating a sell-off that could push Ether price down which is currently trading at $236 down 1.91%.
According to Kim Grauer, a senior economist at Chainalysis, PlusToken could be in part responsible for “continued downward pressure” on the crypto market in the short term.
Legacy markets looking like shit. Plus tokens moving. I’m hedged. I’ll go net short on a bounce.
— CryptoGainz (@CryptoGainz1) June 24, 2020
These funds are cashed out through over-the-counter trading desks, which have significantly lower KYC requirements than most crypto exchanges. In the past Huobi has been the main recipient of them, as per Chainalysis’ March report. The Ponzi scheme has also used wallets that utilize CoinJoin protocol to make it difficult to trace the path of funds.
The company found that stolen cryptos were exchanged into Tether (USDT) sent to OTC brokers to sell and then possibly converted to fiat currency later.
Then this week, Thomas Silkjær founder and CEO of Xrplorer shared that XRP funds are also on the move and “are being moved to exchanges in an increasing rate.” Also, 70% of all XRP on the HBTC exchange came from this shuffle pool, he said. Some were also found to be sent to OKEx and Huobi.
— Thomas Silkjær (@Silkjaer) June 21, 2020
PlusToken is one of the biggest crypto scams that resulted in the loss of more than $2 billion of use funds, as per CipherTrace. Several arrests were also made by Chinese officials pertaining to this scheme.