Today, hundreds of Ethereum (ETH) wallets, dormant for over three years, have recently become active, moving large sums of ETH. This Ether stash was seized by Chinese police in 2021. Moreover, this movement suggests a massive ETH and other crypto dump might be on the horizon soon.
China Shifts $2 Billion In Ethereum
Blockchain analytics firm Lookonchain noted that these wallets have transferred a staggering 789,533 ETH, valued at approximately $2 billion. On-chain tracking revealed that the funds originated from a wallet associated with the notorious Plus Token ponzi scheme, dubbed “Plus Token Ponzi 2.”
This wallet had distributed the vast sum of ETH to numerous addresses in 2020, remaining inactive since April 2021, according to EtherScan data. The sudden activity was detected about four hours ago, with the wallets commencing the transfer of ETH. However, these transfers also led to speculations of scammers tampering with the Ether reserve held with Chinese police.
Currently, since there is no confirmation, it is believed that the Chinese government has initiated action towards the seized crypto assets. The Plus Token scam was one of the largest crypto Ponzi schemes in history. It saw the Chinese authorities seize an immense amount of digital assets during their crackdown.
Also Read: Jump Trading Sells $30M Ethereum, ETH Recovery In Doom?
ETH Loses Hold On $2,500
The confiscated cryptocurrencies included 194,775 Bitcoin (BTC) valued at $11.2 billion, 833,083 Ethereum (ETH) worth $2.11 billion. In addition to the large amounts of Bitcoin and Ether seized, the authorities also confiscated significant amounts of other cryptocurrencies. Here is the detailed list:
- XRP: 487 million XRP ($252 million)
- Bitcoin Cash (BCH): 79,581 BCH ($25.8 million)
- Litecoin (LTC): 1.4 million LTC ($82.3 million)
- EOS: 27.6 million EOS ($12.7 million)
- DASH: 74,167 DASH ($1.7 million)
- Dogecoin (DOGE): 6 billion DOGE ($609 million)
- Tether (USDT): 213,724 USDT
The reallocation of these funds comes at a time when the crypto market is experiencing increased volatility amid geopolitical tensions and recession concerns. Large transfers can influence market prices, potentially causing significant fluctuations. Hence, the actions of the Chinese authorities in handling these assets are being closely monitored by the crypto community.
The next steps by the Chinese authorities regarding the remaining seized assets, including Bitcoin and XRP, remain uncertain. As of writing, Ethereum lost hold on the $2,500 level. As of writing, the ETH price fell to $2,480 on Wednesday, August 7, immediately after this movement. Moreover, Jump Trading’s $30 million ETH selloff also added to the pressure.
Also Read: BlackRock Ethereum ETF Nets $108M Inflows As Nasdaq Seeks ETHA Options Trading
The post Just-In: China Moves $2B Ethereum Seized In Ponzi Scheme, Bitcoin & XRP Next? appeared first on CoinGape.
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