Wallets Linked to Plus Token Scam Transferred $2B Worth of ETH, Raising Concerns

No Confirmation of Official Action from Chinese Government on Seized Assets. Despite market chaos, Ethereum's price holds firm at $2,480, showing resilience.

Ethereum wallets linked to the Plus Token scam, which were seized by Chinese authorities in 2020, have suddenly become active, transferring 820,000 ETH (around $2 billion) in the last 24 hours.

These wallets, which had been inactive for over three years, have sparked concerns about a potential crypto market crash.

Dormant Wallets Shift $2 Billion in ETH

Blockchain analytics firm Lookonchain reports that these wallets have transferred about 820,000 ETH, which is currently valued at over $2 billion.

On-chain tracking shows that these funds originated from a wallet linked to the Plus Token Ponzi scheme, known as “Plus Token Ponzi 2.” This wallet had distributed a large amount of ETH to several addresses in 2020 and had been inactive since April 2021.

The recent activity was detected just a few hours ago, as these wallets began transferring ETH. This movement has raised suspicions that the Ether reserve held by Chinese authorities might have been tampered with.

Chinese Authorities’ Involvement

In November 2020, Chinese authorities seized about $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.

At the time, these seized tokens were valued at about $4.2 billion, but their worth 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. But 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 continuous challenges in the market. As reported by Coinpedia News, Jump Trading has unstaked 11,500 ETH, valued at $29 million, from Lido Finance.

Despite this recent market turmoil, Ethereum’s price is holding steady, currently trading at $2,480, with a market cap of $298 billion. The cryptocurrency is still in the green despite the market tensions.