Recent movement of 7,000 ETH from addresses linked to the notorious PlusToken scheme has raised concerns in the market. The transaction suggests a potential sale of a significant portion of Ethereum seized by Chinese authorities.

Movement of Seized Funds

According to crypto researcher ErgoBTC, the newly transferred 7,000 ETH from PlusToken-linked wallets marks a significant activity after these addresses were dormant since 2021. This movement mirrors previous attempts to obscure the sale of seized assets.

Historical Context

The PlusToken scheme, which operated between 2018 and 2019, is considered one of the largest crypto scams, defrauding approximately 2.6 million users. Chinese authorities seized nearly $4 billion worth of cryptocurrencies, including BTC, ETH, DOGE, and XRP. Although the scheme's operators were arrested, the legal aftermath continues to impact the market.

Market Impact

The movement of these funds has already impacted the Ethereum market. Following the news, ETH's price dipped below the $2,400 mark, indicating growing concerns about additional selling pressure. If the remaining 542,000 ETH are sold, Ethereum's price might drop further, possibly falling below the $2,000 threshold.

The movement of ether from PlusToken addresses has once again raised concerns about the impact of seized funds on the market. Investors are wary of potential sell-offs and their implications for cryptocurrency prices.