According to recent reports, the Chinese government has started selling a significant portion of the Ethereum (ETH) that was seized from the PlusToken pyramid scheme. This move may have contributed to the recent decline in cryptocurrency markets.

ETH Movement on the Blockchain and the Start of the Sell-Off

In early August, ETH movements related to the PlusToken case reappeared on the blockchain for the first time since 2021. Over the past 24 hours, around 7,000 ETH out of the remaining 542,000 ETH have been transferred to exchanges, signaling the start of asset liquidation by the Chinese government. This could impact the price of #etherreum .

The PlusToken Scheme and Its Impact

PlusToken was a massive pyramid scheme that started in 2018 and was shut down in 2019 when Chinese authorities arrested its creators. At its peak, PlusToken was accumulating over 10,000 #BTC☀ weekly, representing a value of approximately $85 million at the time. By the time the scheme was halted, PlusToken had amassed 194,000 BTC and 830,000 ETH, which were worth billions.

Liquidation of Seized Assets

The seized assets were handed over to Beijing Zhifan Technology Co for liquidation, with the proceeds intended to compensate the victims of the fraud. Most of the seized bitcoins were sold between August 2019 and March 2020, fetching an estimated $1.3 billion. Given that Bitcoin's market capitalization was around $160 billion at the time, this sell-off had a noticeable impact on the market.

Ethereum Sell-Off Could Trigger Further Declines

Unlike #bitcoin☀️ , most of the seized Ethereum remained untouched until mid-2021. Around one-third of the 840,000 #ETH🔥🔥🔥🔥 was sold through an exchange called Bidesk. Now that the Chinese government has allegedly resumed selling the remaining ETH, further selling pressure is expected, which could have short-term negative effects on Ethereum's price.

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