Today, October 10, cryptocurrency researcher “FreeSamourai” revealed on the X platform that around 7,000 ETH out of the total 542,000 seized in the “PlusToken” case had been sent to cryptocurrency exchanges, indicating a possible sell-off.
However, no major sale has taken place yet, and the value of these cryptocurrencies is estimated at around $1.3 billion.
If sold, it could put significant downward pressure on the market.
Background on the PlusToken case:
PlusToken launched in 2018 as a South Korean cryptocurrency exchange and wallet offering high-interest accounts, but it was actually a massive Ponzi scheme.
By mid-2019, PlusToken had raised around 194,000 BTC and 830,000 ETH.
In 2020, Chinese authorities seized cryptocurrencies linked to the project worth an estimated $4.2 billion and arrested more than 100 people linked to the fraudulent scheme.
According to the report, most of the seized Bitcoin was converted to cash, while the Ethereum was sent to an unknown trading platform called “Bidesk” for sale.
Last August, Lookonchain analytics service reported that PlusToken-linked wallets had started transferring 790,000 ETH, but this claim was refuted by EmberCN, which reported that most of the ETH was sold in 2021.
Potential impact on Ethereum price:
Currently, the price of Ethereum continues to decline, falling by 2% to below $2,400.
The coin price failed to break the $2,700 barrier and settled above the support level at $2,200.
However, if the selling pressure continues, the price could decline even more quickly, adding additional challenges to an already bearish market.
