Key Points
- Hundreds of wallets dormant for over 3 years are moving large amounts of Ethereum.
- Wallets linked to PlusToken scam moved 789,533 ETH worth almost $2 billion.
According to the latest reports coming from the Lookonchain platform, hundreds of wallets that have been dormant for over three years are moving impressive amounts of Ethereum.
In a post on X, Lookonchain notes that the wallets moved 789,533 ETH coins that are worth approximately $2 billion at current prices.
The platform also noted that the hundreds of dormant addresses that have been transferring ETH are linked to the wallet Plus Token Ponzi 2, according to their on-chain tracking.
Lookonchain notes that Plus Token Ponzi 2 dispersed 789,533 ETH to thousands of wallets back in 2020 and has not moved since April 2021.
A few hours ago, these wallets began to transfer Ethereum, as revealed by the data from Etherscan.io.
Crackdown on the 2020 PlusToken Ponzi Scheme
Lookonchain also noted that the Ethereum coins were seized by Chinese police during the crackdown on the Ponzi scheme known as PlusToken.
In November 2020 the following coins were seized from seven convicts, according to court documents, says data cited by Lookonchain:
- 194,775 BTC ($11.2 billion)
- 833,083 ETH ($2.11 billion)
- 487 million XRP ($252 million)
- 79,581 BCH (25.8 million)
- 1.4 million LTC ($82.3 million)
- 27.6 million EOS ($12.7 million)
- 74,167 DASH ($1.7 million)
- 6B DOGE ($609 million)
- 213,724 USDT
The court reportedly said back in 2020 that the seized crypto would be processed pursuant to laws and “forfeit to the national treasury.”
The reason for which the funds have been moved is not clear yet, and we don’t know whether or not they remain in the control of Chinese authorities.
The PlusToken Scam
Coin Bureau calls the PlusToken Scam the biggest crypto fraud in history.
In a paper dedicated to crypto ponzi scams, Coin Bureau addressed the PlusToken scam, highlighting that the targets were mainly investors in China and South Korea, although others were affected across East Asia, Germany, and Canada.
Investors were lured in with promises of 9-18% returns if they bought PLUS tokens via BTC and ETH. They were reportedly told that these PLUS tokens would gain value up to $350 and that the scheme would derive its profits from crypto mining operations, affiliate programs, and exchange profits.
The PlusToken wallet was also touted as a potential game-changer in the space, Coin Bureau notes.
Local media reported at the time that the people behind the Ponzi scheme defrauded over 2 million people for more than 50 billion yuan, or around $7.6 billion.
The PlusToken operation officially started back in May 2018 and advertised a non-existent crypto arbitrage trading platform.
Between April 6, 2018, and June 27, 2019, the pyramid scheme lured in more than 2.6 million members, according to official court documents.
Official reports note that 15 people were convicted in connection to the case and they were sentenced to between 2 and 11 years in jail with fines between $100,000 and $1 million.
