Update (August 8 at 1:48 UTC): Looconchain removed post X, which is the subject of this article after analysts claimed that Post X was incorrect, because most of the funds were sold in 2021. A modern article covering that the latest development can be found here.
Hundreds of cryptocurrency portfolios, which have remained inactive for over three years, suddenly began to change vast amounts of ether (ETH).
According to the Onchain Lookonchain analyst, up to 789 533 ETH was associated with the Plus token Ponzi program and has not been moved since April 2021.
Tracking onchain revealed that tokens were associated with the “plus token Ponzi 2” portfolio, which dispersed ETH to thousands of smaller wallets in 2020.
Related: Judge labels 2 unclear altcoins as goods in the case of 120 million USD Ponzi
Involvement of Chinese authority
During repression, the Chinese authorities took around $ 4.2 billion in many cryptocurrency assets, including in plus token of fraud.
The assets included 194 775 Bitcoins (BTC), 833 083 ETH, 497 million XRP (XRP), 6 billion Dogecoin (dog) and other assets such as Bitcoin Cash (BCH), Litecoin (LTC) and USDT (USDT).
Although the combination of confiscated tokens was worth around $ 4.2 billion at the end of 2020, total funds are currently worth around $ 13.5 billion, because the current assets prices are much higher.
Related: FBI bust 43 million USD Crypto and Las Vegas Hospitality Scheme Ponzi
Implications for the cryptocurrency market
The reactivation of these portfolios and the potential for selling the funds occupied by the Chinese authorities can cause panic on the market, but this is not yet evident.
At the time of writing, the ETH price was around USD 2,374, which is an augment of about 1% during the day, and so far ETH flows from the wallets began at 10:17 UTC on August 7.
Related: The Modern York jury condemns two Icomtech Crypto “Ponzi” promoters
What does Ponzi define?
On July 4, the District Judge Illinois on the side of the Futures Trade Commission in the United States (CFTC) in labeling two Altcoins as goods on the Ponzi cryptographic program.
The Ponzi program deceived their victims, promising “fixed phrases” 15% per year from investment in “digital goods”.
According to CFTC, digital currencies involved in the case fell “to the same general class in Bitcoin, where there is an regulated trade in futures contracts.”
Warehouse: Like cryptographic bots, they ruin cryptographic – including an automatic memecoin rug
