Originally published on: August 07, 2024
A recent development in the world of cryptocurrency has caught the attention of analysts and investors alike. It has been discovered that hundreds of cryptocurrency wallets that have been inactive for over three years suddenly started moving large amounts of Ether (ETH).
The onchain analyst Lookonchain uncovered that nearly 789,533 ETH was connected to the Plus Token Ponzi scheme and had not been touched since April 2021. These tokens were associated with the “Plus Token Ponzi 2” wallet, which distributed the ETH to thousands of smaller wallets back in 2020.
In the past, Chinese authorities cracked down on the Plus Token scam and seized around $4.2 billion in various crypto assets, including Bitcoin, XRP, Dogecoin, Bitcoin Cash, Litecoin, and USDT. These seized assets have now surged in value to approximately $13.5 billion due to the increased prices of cryptocurrencies.
The sudden reactivation of these wallets and the possibility of Chinese authorities selling off the seized funds could potentially cause market volatility. However, as of now, there has been no panic observed in the market.
On Aug. 7, the ETH outflows from these dormant wallets began, and the market is closely monitoring the situation. With ETH’s price at around $2,474, investors are keeping a close eye on any potential impacts on the market.
In a similar vein, a recent ruling by an Illinois district judge classified two altcoins as commodities in a crypto Ponzi scheme case. The scheme promised investors high returns on their investments in digital asset commodities, similar to Bitcoin.
As the crypto market continues to evolve, it is crucial for investors to stay informed about developments and rulings that could impact their investments. Keeping up-to-date with the latest trends and regulations can help individuals make informed decisions in the fast-paced world of cryptocurrency.