More

    Bitcoin Price Drop in Danger As $150,000,000 Worth of BTC Yet to be Cashed Out by PlusToken

    • Researcher Chainalsysis found that the biggest Ponzi scheme behind the 50% drop in BTC price
    • PlusToken has cashed out at least $185,000,000 worth of stolen token via Huobi

    Bitcoin is currently stuck at just above $7,000 and hasn’t dropped below this level for the past two weeks. But now might be the time to be cautious because PlusToken scammers might be back in the market, the New York-based firm Chainlysiss said Monday in the wake of a five-month investigation.

    Researcher Chainalysis released a new report stating the world’s largest cryptocurrency likely to remain under pressure as perpetrators of the estimated over $2 billion PlusToken scandal readies to dump coins to cash out.

    Chainalysis tracked a total of 180,000 BTC, 6,400,000 ETH, 111,000 USDT, and 53 OMG that were sent from scam victims to PlusToken wallets, this made it the largest Ponzi scheme ever at $2 billion — while Chinese media reported the scam to be of $3 billion.

    Chinese Ponzi Scheme PlusToken Behind BTC’s 50% Drop

    The scammers have already cashed out at least $185,000,000 worth of stolen token via Bitcoin OTC brokers, Huobi.

    The firm found that PlusToken wallets sent a steady flow of BTC starting in mid-April that spiked in late June just before the perpetrators' arrests. In August, a few spikes were then seen again only to start high and remain high throughout September and then a few more spikes in October.

    The report found, “spikes in on-chain flow to OTC brokers correlate with drops in Bitcoin’s price.”

    Bitcoin tumbled about 50% from its 2019 peak in late June coinciding with Chinese authorities arresting multiple suspects in the pyramid scheme that promised returns as high as 600%.

    Chainalsysis tracked roughly 45,000 BTC and 800,000 ETH that scammers transferred to their own addresses. For now, at least 10,000 of 800,000 ETH has been cashed out.

    25,000 BTC has been cashed out while 20,000 BTC has been spread out across more than 8,700 addresses — these have been transferred more than 24,000 times using 71,000 different addresses.

    This means, nearly $150,000,000 USD worth of Bitcoin is yet to be cashed out that the firm expects to “drive down” the price of cryptocurrencies.

    “That’s certainly something to consider when you are thinking about where the price is going, at least in the short term,” Kim Grauer, senior economist at Chainalysis also told Bloomberg. “It could be, according to our research, continued downward pressure.”

    Bitcoin (BTC) Live Price

    1 BTC/USD =$8,417.8841 change ~ -2.96%

    Coin Market Cap

    $153.02 Billion

    24 Hour Volume

    $5.48 Billion

    24 Hour VWAP

    $8.48 K

    24 Hour Change

    $-249.0768

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    AnTy
    AnTy
    AnTy has been involved in the crypto space full-time for over a year now. Before his blockchain beginnings, he worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,261FansLike
    2,721FollowersFollow
    4,101FollowersFollow

    Live Bitcoin Price & Latest BTC Chart News

    Today's Latest Crypto News

    Vitalik Buterin ‘Highly Applauds' Bitcoin Cash Mining Cartel’s Proposal To Soft Fork BCH

    Roger Ver, Antpool’s Jihan Wu, BTC.Top’s Jang Zhuoer and Haip Yang of ViaBTC agree on BCH funding plan Although redirecting BCH coinbase rewards...

    Hacker Noon To Embed Blockchain Tech Into Its Blog, Allowing More Interactions With Readers

    Hacker Noon, a knowledge website, announced they will launch on a blockchain, shortly after leaving Medium for calls of centralization. The official announcement from...

    US Finance Giant Bottomline Testing Ripple’s Disruptive Technology

    Bottomline Technologies processes trillion dollars in payments every year and operates in 92 countries The idea is to update the company's software mode...

    SEC Strikes Against Yet Another Unregistered ICO to Recover $147,000 ‘Ill-Gotten' Gains

    In January, U.S. SEC has gone after 3 Initial Coin Offerings (ICO) SEC files complaint against Opporty and its sole owner Sergii Grybniak...

    Payment Provider Square Wins US Patent For Real-Time Crypto-To-Fiat Automatic Swaps

    Square has been awarded a patent for a payment network that will allow individuals holding various types of of assets to transact with each...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.