It has just been announced that there has been a massive development in the PlusToken case. PlusToken was a 2019-era crypto Ponzi scheme that managed to entice most users in Asia into depositing Bitcoin, Ethereum, EOS, and a range of other digital assets valued at billions.
As recently reported by The Block, $ 4.2 billion worth of cryptocurrency has been seized by lawmakers in China
It was rumored that many of the PlusToken ringleaders were still on the run, although the report may have invalidated that rumor.
The holdings that the Chinese authorities have allegedly seized are substantial: 194,775 BTC, 833,083 ETH, 1.4 million LTC, 27.6 million EOS, 74,167 DASH, 487 million XRP, 6 billion DOGE, 79,581 BCH and 213,724 USDT.
While these assets were only valued at around $ 2 billion when the scam began, their value now stands at $ 4.2 billion.
It is unclear whether these coins have already been sold or not.
The 2019 crypto market correction is believed to have been caused by an influx of selling pressure from Bitcoin and Ethereum on exchanges like Huobi, apparently from PlusToken-related addresses. This report seems to have contradicted that – right?
Has the Chinese government sold billions of stolen cryptocurrencies?
According to the Chinese crypto reporter „Wu“, there is a likelihood that the government has sold a large part of the coins:
“The Chinese government seized 190,000 BTC and 830,000 ETH from the Plustoken MLM case with a total value of billions of dollars. The official announcement seems to indicate that the government has sold them and returned them to the central treasury administered by the central bank. “
This is in line with blockchain analysis, which found that a large proportion of the Plustoken coins have not yet moved, while most of them were sold on exchanges like OKEx and Huobi earlier this year or late last year.
This also removes the confusion about how PlusToken funds could be deposited on these centralized exchanges without the authorities having to freeze the funds.
Matthew Graham, a blockchain-focused investor based in China, has confirmed this view. According to Graham, after reading the court documents, it is likely that the coins have been „mostly sold,“ so there is no need for FUD.