PlusToken Transfers 7000 ETH to Exchanges

Approximately 7000 ETH, valued at $16.7 million, seized from the operators of the PlusToken cryptocurrency pyramid scheme, have been transferred to exchanges. This was reported by OXT Research analyst known as ErgoBTC.

In early August, the remnants of ETH seized from the multibillion dollar PlusToken scheme awoke on-chain for the first time since 2021.

Over the last 24h about 7k ETH of the remaining 542k ETH ($1.3b) was sent to exchanges indicating intent to begin selling the remaining tokens. pic.twitter.com/tu2o7y4o4L

— ∴FreeSamourai∴ (@ErgoBTC) October 9, 2024

According to his assessment, this could signal the sale of all remaining ~542,000 ETH, valued at $1.3 billion.

PlusToken was a Chinese financial pyramid scheme launched in the spring of 2018 and dismantled in the summer of 2020. At that time, Chinese law enforcement arrested 27 main suspects and confiscated over $14 billion in Bitcoin, Ethereum, and other cryptocurrencies.

According to ErgoBTC, the seized assets were transferred to Beijing Zhifan Technology for subsequent conversion into fiat to compensate for damages.

The majority of PlusToken’s Bitcoin, worth approximately $1.3 billion, was liquidated between 2019 and 2020. 

“However, Ethereum remained largely untouched until the summer of 2021, when just under a third of ~840,000 ETH were sent to the relatively unknown exchange Bidesk and presumably sold,” the analyst noted.

He highlighted that the asset liquidation followed a consistent pattern of mixing coins across thousands of intermediary addresses.

In early August, the remaining Ethereum from the scheme began to move for the first time.

“Yesterday, approximately 15,700 ETH were transferred from these last known addresses, repeating the mixing attempt used in 2020 and 2021. Of these, just over 7000 ETH were sent to several exchange accounts,” reported ErgoBTC.

In his view, this likely indicates a complete liquidation of assets in the near future, which could exert pressure on the market.

Back in late 2020, a Chinese court sentenced 14 organizers of the scheme. Key participants received prison terms ranging from two to 11 years, along with fines from 120,000 to 6 million yuan.