The selling pressure created in the crypto market in recent days might have been triggered by the dumping of hundreds of Bitcoin on exchanges by Chinese crypto Ponzi scheme Plus Token.
Pointed out by Dovey Wan, founding partner of Blockchain -based investment company Primitive Ventures, on August 14, wallets related to the scheme have been active and transferred funds to major exchanges like Huobi, Bitrex, and Binance.
4. A security audit firm Peckshield has done a graph analysis of the money flow from PlusToken’s wallet in early July, and figured out abt total ~1000 has gone into Bitrrex and Huobi. So basically the sells off has started around early July pic.twitter.com/uDXw1vt38t
— Dovey Wan ? ? (@DoveyWan) August 14, 2019
Launched in mid-May 2018, PlusToken assured six to 18 percent monthly interest on deposited Cryptocurrencies and similar to a classic Ponzi scheme, it showcased four-tire memberships.
By early 2019, the project claimed that it received funds from ten million investors. According to Wan, the project gathered around $3 billion in funds.
Funds still in control of perpetrators
Though the team members of the Ponzi scheme were already arrested two months ago by the Chinese police, the wallet addresses were not confiscated by the authorities due to their P2SH structure.
Correction, this fucking scam at least scammed over 200K $BTC as I dug out my old chats to compile all their wallet addresses this is nuts https://t.co/E8bJFIf8h8
— Dovey Wan ? ? (@DoveyWan) August 14, 2019
Wan publicly revealed multiple wallet addresses related to the scheme and even published evidence of the flow of funds from them to major digital asset exchanges, which she gathered from the security audit firm Peckshield.
She also pointed out that the perpetrators are transferring funds in small batches of 50-100 BTC at a time to avoid raising suspicions. Meanwhile, Wan requested blockchain research firms like Peckshield and Chainalysis to monitor the wallet address related to the scheme.
Plus Token is not the only multi-billion crypto Ponzi scheme. The notorious promoters of OneCoin duped investors across the world for around $4 billion. Although the authorities of multiple countries are trying to capture the people associated with the scheme, the fraudsters are still victimizing people in many regions.
