PlusToken ETH Holdings Sent to Exchanges, Signaling Intent to Sell the Remaining $1.3B Stash

On Oct. 10, crypto researcher ‘FreeSamourai’ told his X followers that around 7,000 ETH of the remaining 542,000 ETH from the PlusToken seizures

Fresh ETH movements from wallets linked to the multi-billion dollar PlusToken scam were spotted again on Oct. 9. According to crypto researcher ‘FreeSamourai,’ around 7,000 ETH of the remaining 542,000 ETH from the PlusToken seizures were shifted.

On-chain data shows that the remaining stash of ETH from the seizure is valued at a whopping $1.3 billion and would put substantial downward pressure on spot markets if it hasn’t already been sold off.

What is PlusToken? A quick refresher

PlusToken began operating in early 2018, releasing a white paper that marketed the platform as a South Korean crypto exchange and wallet provider. It quickly gained popularity by offering users high-interest accounts on their crypto deposits, promising returns of up to 12.6%.

However, behind the scenes, PlusToken was actually a Ponzi scheme that collapsed in mid-2019. By the time of its closure, it had managed to swindle and amass 194,000 BTC and 830,000 ETH from unsuspecting victims.

As part of a major crackdown on crypto scams in 2020, Chinese police were able to uncover the scam ring and arrest more than 100 people linked to the PlusToken scheme. They also seized crypto assets that were valued at $4.2 billion at the time.

According to court documents, the confiscated crypto assets were handed over to Beijing Zhifan Technology Co. to be converted into cash. The proceeds from this sale were to be used to compensate victims of the scam.

What’s happening now? ETH movements, differing reports

On Oct. 9, FreeSamourai noted that the remaining ETH from the PlusToken seizure had awoken on the network again. Around 7,000 ETH was spotted being moved, out of the remaining 542,000 ETH ($1.3b) was sent to exchanges indicating intent to begin selling the remaining tokens.

They added that the ETH “was sent to a relatively unknown exchange called Bidesk, and presumed sold.”

In early August, blockchain analytics service Lookonchain claimed that wallets linked to PlusToken had begun shifting around 790,000 ETH. However, this was quickly debunked by Chinese blockchain analytics account EmberCN which stated at-the-time that most of the ETH had already been sold in 2021.

There were no recent updates on the EmberCN account regarding these latest ETH movements.

ETH price outlook as asset dumps 2% again

It has been a rough week for ETH price, which has seen a further 2% slip on Oct. 9. This dumps the asset back below the $2,400 level again.

After rallying to highs of $2,700 in early September, ETH has failed to break this resistance and has been trading sideways since. It has managed to hold support at $2,200 throughout this period.

However, with further bearish price action and a lack of buying pressure, ETH could quickly fall back to this support level, especially considering that broader crypto markets are dumping again today.

As if Ethereum didn’t need more FUD and selling pressure, the asset has retreated again today. It has dumped a further 2% on the day to fall below $2,400 at the time of writing.

Ethereum has been trading sideways for more than two months, failing to break resistance at $2,700 but holding above support at $2,200.

However, it remains to be seen whether the PlusToken ETH is another unexpected supply overhang, but the premise has delighted Bitcoin maxis.

Further selling pressure could see it fall back to this level very quickly, considering that broader crypto markets are retreating again.

It’s worth noting that the remaining ETH from the PlusToken scam is still a significant amount and could put downward pressure on spot markets if it's sold. However, the reports on whether this ETH is being sold or not differ.

This is a developing story and will be updated as more information becomes available.

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