What Does the $2 Billion Move Mean?
Today, hundreds of people who have been inactive for more than three years Ethereum The (ETH) wallet suddenly became active and transferred a large amount of ETH. These ETH stocks were among the assets confiscated by Chinese police in 2021. This activity raised the possibility of a massive sale of ETH and other cryptocurrencies.
China Transfers $2 Billion Worth of Ethereum
Blockchain analytics firm Lookonchain revealed that these wallets transferred 789,533 ETH worth around $2 billion. On-chain tracking revealed that these funds originated from a wallet associated with the infamous Plus Token Ponzi scheme, and that this wallet was dubbed “Plus Token Ponzi 2.”
This wallet had distributed a large amount of ETH to various addresses in 2020 and had been dormant since April 2021. However, it suddenly started to become active around four hours ago and ETH transfers started to take place. These transfers led to speculation that some scammers may have been tampering with the Ether reserves held by the Chinese police.
Although there is no confirmed information at this time, the Chinese government has seized crypto- The Plus Token scam is known as one of the largest crypto Ponzi schemes in history, and Chinese authorities seized a huge amount of digital assets during the raid.
Ethereum Loses $2,500 Level
Among the confiscated cryptocurrencies were 194,775 Bitcoin (BTC) and 833,083 Ethereum (ETH). In addition to these assets, other cryptocurrencies were also seized. 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 impact market prices and cause significant volatility. Therefore, how Chinese authorities manage these assets is being watched closely by the crypto community.
The Chinese authorities’ next steps regarding other seized assets like Bitcoin and XRP remain unclear. At press time, Ethereum has lost $2,500. Jump Trading’s $30 million ETH sale also added pressure to the market.
