$2 Billion Worth of Ethereum Transferred: Could Chinese Confiscated Assets Lead to Market Instability?
Ethereum wallets associated with the infamous Plus Token Ponzi scheme have sprung back to life, moving a staggering 820,000 ETH valued at over $2 billion in the last day. These wallets, dormant for over three years, have sparked concerns about a potential upheaval in the cryptocurrency market.
The sudden resurgence of these funds, initially confiscated by Chinese authorities, has sent shockwaves through the crypto community, raising apprehensions about market stability.
Dormant Wallets Shift $2 Billion in ETH
According to Lookonchain, a blockchain analytics company, these wallets have transferred approximately 820,000 ETH, equivalent to more than $2 billion.
On-chain investigations reveal that the funds originated from a wallet linked to the Plus Token Ponzi scheme, identified as “Plus Token Ponzi 2.” This wallet had previously dispersed a substantial amount of ETH to various addresses in 2020 and had been inactive since April 2021.
The recent activity was detected just hours ago, as the wallets commenced moving ETH. This sudden development has fueled speculations about potential interference with the Ether reserve held by Chinese authorities.
Chinese Authorities’ Involvement
In November 2020, Chinese officials seized approximately $4.2 billion in different crypto assets, including those from the Plus Token scam. These assets encompassed 194,775 Bitcoin, 833,083 Ethereum, 497 million XRP, 6 billion Dogecoin, and other cryptocurrencies such as Bitcoin Cash, Litecoin, and Tether.
While the seized tokens were valued at around $4.2 billion initially, their worth has surged to approximately $13.5 billion due to the escalation in asset prices.
No Official Confirmation
Despite these developments, there has been no official confirmation regarding any actions taken by the Chinese government. The reactivation of these wallets and the potential sale of assets by Chinese authorities could potentially instigate panic in the market.
Ethereum Is In Market Turmoil
Ethereum is currently navigating through challenging times in the market. Recent reports from Coinpedia News highlighted that Jump Trading has unstaked 11,500 ETH, valued at $29 million, from Lido Finance.
Despite the ongoing market turmoil, Ethereum’s price remains resilient, hovering around $2,480, with a market capitalization of $298 billion. The cryptocurrency continues to show strength amidst the prevailing market uncertainties.
