Hundreds of Plus Token Ponzi Scheme Wallets Transfer 789K Ethereum After 3 Years of Inactivity

Reports from Lookonchain indicate a significant movement of Ethereum (ETH) from numerous wallets associated with the Plus Token exit scam that have remained inactive for over three years. The blockchain analytics platform reveals that these wallets have transferred a total of 789,533 ETH, equivalent to approximately $2 billion. Notably, the origins of these funds can be traced back to one of the wallets connected to the infamous Asian scam, the Plus Token ponzi scheme.

In a related development, Chinese authorities took action in November 2020 by confiscating various cryptocurrencies as part of a crackdown on the individuals behind the Plus Token ponzi scheme. Among the seized assets were 194,775 BTC, 833,083 ETH, 79,581 BCH, 27.6 million EOS, 487 million XRP, 1.4 million LTC, 213,724 USDT, 74,167 DASH, and 6 billion DOGE. Initially valued at $4.2 billion, these tokens are now estimated to be worth nearly $15 billion. Following the crackdown, the Chinese government moved 789,533 ETH to an unmarked blockchain address and subsequently distributed the funds to multiple undisclosed addresses.

According to a report by Lookonchain, the wallets involved in these transactions had been dormant since approximately April 2021, around 3.3 years ago. However, these previously inactive wallets suddenly became active today to initiate the movement of ETH.

The Crypto Basic confirmed some of these transactions, highlighting one address that received 736 ETH from the seized funds. This address, after a 3.3-year dormancy period, transferred all 736 ETH to another wallet at 10:17 AM (UTC). Additionally, this recipient wallet received an additional 2,143 ETH from four other addresses associated with the Plus Token Ponzi funds during the same timeframe, resulting in a total holding of 2,879 ETH, equivalent to $7,032.

The sudden reactivation of numerous dormant addresses and the transfer of $2 billion worth of ETH by the Chinese government could potentially unsettle investors and lead to a decline in the asset’s value. Despite these developments, Ethereum has not displayed any significant correction in its price leading up to the current moment. The second-largest cryptocurrency in terms of market capitalization was trading at $2,441 per token, marking a 0.79% increase in the daily charts.