Chinese intervention in Ethereum use re-emerges as a major topic following reports of large volumes of ETH confiscated from the PlusToken scam being moved.

Scale of Cryptocurrency Seizure

In the fight against the PlusToken scam, Chinese authorities seized various cryptocurrencies, including Bitcoin, Ethereum, XRP, and Litecoin, with a total value exceeding $14 billion. This fraud deceived over 2.6 million people between 2018 and 2019.

Movement and Sale of ETH

Earlier this week, about 7,000 ETH seized from PlusToken were transferred to exchanges like Binance and OKX. This has led to speculation about the sale of the entirety of the $1.29 billion worth of ETH that was seized.

CITE_NA: “In early August, Ethereum seized from the PlusToken scheme began to move on-chain for the first time since 2021. In the last 24 hours, approximately 7,000 ETH were sent to exchanges. This suggests that China may intend to sell the remaining amount in the future.”

Impact on the Ethereum Market

The potential sale of such a large amount of ETH could exert considerable pressure on the market. Analysts warn that it may lead to an oversupply and downward pressure on the price of ETH.

The situation surrounding China's seizure and potential sale of Ethereum continues to stir interest and concern in the cryptocurrency market, especially in light of the potential increase in supply and pressure on ETH prices.