$2 Billion Ethereum In Move: Are Chinese Seized Assets About to Crash the Market?
Mustafa Mulla7 Aug 20242 min read
Ethereum wallets linked to the infamous Plus Token Ponzi scheme have suddenly become active, transferring 820,000 ETH, worth over $2 billion, in the past 24 hours. These wallets, inactive for more than three years, have raised fears of a potential crypto market crash.
The funds, originally seized by Chinese authorities, are causing concern as their unexpected movement raises questions about market stability.
Dormant Wallets Shift $2 Billion in ETH
According to Lookonchain, a blockchain analytics firm, these wallets have transferred approximately 820,000 ETH equivalent to over $2 billion.
On-chain tracking reveals that the funds originated from a wallet associated with the Plus Token Ponzi scheme, known as “Plus Token Ponzi 2.” This wallet had previously distributed a vast sum of ETH to numerous addresses in 2020 and remained inactive since April 2021.
The sudden activity was detected just a few hours ago, as the wallets began transferring ETH. This movement has led to speculation about potential tampering with the Ether reserve held by Chinese authorities.
Chinese Authorities’ Involvement
In November 2020, Chinese authorities seized around $4.2 billion in various crypto assets, including those from the Plus Token scam. These assets included 194,775 Bitcoin, 833,083 Ethereum, 497 million XRP, 6 billion Dogecoin, and other cryptocurrencies like Bitcoin Cash, Litecoin, and Tether.
While these seized tokens were valued at about $4.2 billion at the time, their value has now soared to approximately $13.5 billion due to higher asset prices.
No Official Confirmation
However, there is no confirmation yet of any official action taken by the Chinese government. Perhaps, the reactivation of these wallets and the possibility that Chinese authorities might sell off the assets could trigger panic in the market.
Ethereum Is In Market Turmoil
Ethereum is facing ongoing challenges in the market. Recently, Coinpedia News reported that Jump Trading has unstaked 11,500 ETH, worth $29 million, from Lido Finance.
Despite this recent turmoil, Ethereum’s price is holding steady, trading at $2,480, with a market cap of $298 billion. The cryptocurrency remains in the green despite the market tensions.
