Are Chinese takeovers going to disrupt the market?
Ethereum wallets linked to the infamous Plus Token Ponzi scheme have suddenly become active, transferring 820,000 ETH, worth more than $2 billion, in the past 24 hours. These wallets, which have been inactive for more than three years, have raised concerns about the potential of the crypto market.
The funds, initially seized by Chinese authorities, are raising concerns as their unpredictable movements raise questions about market stability.
Dormant wallets transfer $2 billion in ETH
According to Lookonchain, a blockchain analytics firm, these wallets transferred approximately 820,000 ETH worth more than $2 billion.
On-chain monitoring revealed that the funds came from a wallet linked to a Plus Token Ponzi scheme known as “Plus Token Ponzi 2”. This wallet previously distributed huge amounts of ETH to multiple addresses in 2020 and has been inactive since April 2021.
The sudden activity was discovered a few hours ago as the wallets started transferring ETH. This move has led to speculation of a possible breach of the Ether reserves held by Chinese authorities.
Involvement of Chinese authorities
In the year In November 2020, Chinese authorities seized nearly $4.2 billion in various crypto assets, including proceeds from the Plus Token scam. These assets include 194,775 Bitcoin, 833,083 Ethereum, 497 million XRP, 6 billion Dogecoin and other cryptocurrencies such as Bitcoin Cash, Litecoin and Tether.
While these reserved tokens were valued at $4.2 billion at the time, their value has now increased to $13.5 billion due to asset prices.
No official confirmation.
However, there is still no confirmation of any official action by the Chinese government. Perhaps the reactivation of these wallets and the possibility that the Chinese authorities could sell the assets could cause panic in the market.
Ethereum is in a market turmoil.
Ethereum is facing continuous challenges in the market. Recently, Coinpedia News reported that Leap Trading did not receive 11,500 ETH worth $29 million from Lido Financial.
Despite this latest turmoil, Ethereum's price is trading at $2,480, with a market cap of $298 billion. Despite market tensions, cryptocurrency remains in the green.
