During the last two weeks as cryptocurrency prices slid below long term foundational support, speculators assumed Plustoken scammers may be behind the dump. Blockchain intelligence firm Chainalysis published a report which claimed Plustoken coin sales might be dragging BTC prices down. Moreover, on December 19, Plustoken scammers moved 789,525 ETH ($101 million) from one address to another.
$101 Million of Ethereum Moves
On December 16, the blockchain surveillance firm Chainalysis published an excerpt from its January 2020 report indicating the Plustoken Ponzi scheme might be behind the declining crypto prices this year. The Plustoken project was a wallet created by a group of South Korean nationals who told people the wallet would reward users with 6-18% in monthly profits. By the time the scam ended with arrests, close to $3 billion dollars in a variety of digital assets had been defrauded from Plustoken users. Chainalysis called the Plustoken scam one of the largest crypto-based Ponzis ever created. Following the report, BTC dropped below the $7k zone and Kim Grauer, senior economist at Chainalysis, said that Plustoken scammers dumping is “certainly something to consider” when thinking about where the short term price is going.
Since then, BTC’s fiat value jumped back above the $7k region and other digital assets followed suit, regaining losses. However, crypto enthusiasts and traders are aware that the Plustoken scammers still have 20,000 more BTC to unload and 789,000 ETH as well. Then on December 19, armchair sleuths noticed that the 789,525 ETH ($101.2 million at press time) had moved from one address to another. The cofounder of Three Arrows Capital, Su Zhu, spotted the 789k ETH movement and said: “Imagine if they throw this into ETH2 Phase0 staking — Perpetual endowment yield.” The ETH has since been resting in the wallet and has not…