In a major development for the crypto world, around $16 million in Ether (ETH) linked to the notorious Plus Token Ponzi scheme has started moving toward exchanges, indicating a potential sell-off. According to on-chain analyst ErgoBTC, this is part of a larger movement of 15,700 ETH this week, following the consolidation of 542,000 ETH into 294 wallets in August. This has raised concerns about the eventual sale of the entire $1.3 billion ETH stash connected to the Plus Token scam.
The Plus Token scheme, which defrauded investors of billions between 2018 and 2019, resulted in the seizure of approximately 833,083 ETH by Chinese authorities. Although a portion of the Ether had already been sold on now-defunct exchange Bidesk in 2021, roughly 540,000 ETH remained dormant until its recent movement, signaling an impending market disruption.
Moving ETH: Market Impact
The movement of 15,700 Ether, equivalent to $16 million, is not expected to cause a significant market shock. However, the potential sale of the entire 540,000 ETH, worth an estimated $1.3 billion, could create significant selling pressure and impact the price of Ether. ErgoBTC noted that the distribution of ETH from the Plus Token wallets is unlikely to end with this week’s activity.
Blockchain trackers such as Lookonchain and Arkham Intelligence initially reported conflicting figures regarding the movement of dormant ETH linked to Plus Token. While Lookonchain initially claimed 789,533 ETH had started moving, they later retracted the post. Both ErgoBTC and EmberCN have since agreed that around 269,000 ETH were sold at Bidesk in 2021, with the remaining 540,000 ETH now making its way to the market.
Also read: Bitcoin Nears New Record for Longest Post-Halving Sideways Market
Arrest of the ‘Crypto King’
In a separate development, Filipino authorities arrested a 23-year-old self-proclaimed “Crypto King” named Joshua on October 7, accusing him of defrauding investors out of approximately 600 million Philippine pesos (around $10.5 million). According to the Philippine News Agency, Joshua allegedly targeted high-profile individuals, including media figures, police, and government employees, in a well-coordinated Ponzi scheme.
This is not Joshua’s first run-in with the law. He was previously arrested under the name Vance Joshua Tamayo in September 2023 for running a similar scheme, which promised investors a 4.5% monthly return. Although he initially delivered on his promises, he later ceased communication with investors. Joshua was released on bail after his first arrest but is now facing a much larger fraud case, with authorities intending to prevent any chance of bail.
Market Implications
As both the Plus Token Ether and the arrest of the “Crypto King” make headlines, the crypto market faces potential turbulence. While the Ether movements connected to Plus Token might trigger market instability, the arrest of high-profile scammers like Joshua underscores the ongoing challenges in combating fraud in the cryptocurrency space. Investors and analysts alike are closely watching these developments, particularly the potential market impact of a significant Ether sell-off.
