The PlusToken Financial Pyramid Scheme and the Cryptocurrency Market: Turmoil in Ethereum
Chinese PlusToken Pyramid Scheme Still Impacting the Cryptocurrency Market
The situation on the cryptocurrency market is once again attracting attention. This time, the spotlight is on the Chinese PlusToken pyramid scheme, which was dismantled by Chinese law enforcement in 2020. Despite the passage of time, its effects are still being felt on the market, especially concerning Ethereum.
Transfer of Huge Amounts of Ethereum Worth Billions of Dollars
Hundreds of wallets have started transferring around 2,800 Ethereum tokens, worth nearly 2 billion dollars in total, linked to the scandalous PlusToken scheme. Recent fund transfers from an account holding 789,533 Ethereum caused a 2% drop in the value of ETH, worrying investors and market observers.
Scale of the PlusToken Pyramid Scheme
PlusToken turned out to be a colossal pyramid scheme, the effects of which are still visible. Following the crackdown by Chinese authorities, cryptocurrencies worth a total of 14 billion dollars were confiscated. Among them were 194,775 Bitcoins and 833,083 Ethereum, making PlusToken one of the largest cryptocurrency scandals in history.
Huge Consequences and Investigation
During the investigation, Chinese police also confiscated significant amounts of other cryptocurrencies such as Ripple, Bitcoin Cash, Litecoin, EOS, Dash, Dogecoin, and Tether. Chinese courts convicted 15 individuals involved in the scandal, which affected up to 2 million investors, showcasing the scale of the problem.
Significant Impact on Ethereum
Fear of selling pressure led to significant movements of Ethereum in the market. Jump Crypto moved 277 million dollars’ worth of ETH to various exchanges, further raising tension around the cryptocurrency. In recent days, Ethereum has lost 25% of its value, but its market value remains relatively stable, with a slight increase of 0.7% over the last 24 hours.
Monitoring the situation related to the PlusToken pyramid scheme becomes crucial for cryptocurrency market participants who eagerly await further information and potential developments.
