On-chain analytics firm Lookonchain has reported that hundreds of dormant Ethereum (ETH) wallets, inactive for over three years, have suddenly sprung to life, transferring a staggering 789,533 ETH, valued at approximately $2 billion. The funds were initially traced back to a wallet labeled “Plus Token Ponzi 2,” raising concerns and questions among investors, analysts, and the broader crypto community on the impact of the infamous PlusToken Ponzi scheme.
Lookonchain’s findings show that Ethereum in these wallets was part of the massive holdings seized by Chinese authorities during their crackdown on the PlusToken scheme in 2020. The PlusToken Ponzi scheme, which operated as a fraud investment platform, defrauded investors to the tune of billions in various crypto assets. The scheme’s operators dispersed the seized ETH to thousands of wallets, but the assets have remained untouched since April 2021.
Recently, on-chain tracking revealed that the PlusToken Ponzi 2 wallet dispersed 789,533 ETH to thousands of addresses in 2020. These wallets remained inactive until a few hours ago when they began transferring Ethereum again.
The PlusToken Ponzi scheme initially gained notoriety in 2019 when it was revealed that its operators had fled with approximately $3 billion in users’ funds. On July 9th, journalist Wu Colin noted that the scheme, managed by a group led by an individual from Changsha, China, had successfully acquired 310,000 BTC, 9.17 million ETH, and over 51 million EOS from unsuspecting investors.
Following an extensive investigation, Chinese authorities arrested its core members in 2020, who accounted for 27 main suspects and 82 key participants. During the raid, the Chinese police recovered substantial digital assets, including 190,000 BTC, 830,000 ETH, and 27.24 million EOS.
Reports showed that the Chinese authorities had seized these assets during the initial crackdown on PlusToken. However, the sudden movement of Ethereum raises questions about the current disposition of these assets and the motives behind the transfers.
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