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Bitcoin Dip Allegedly a Result of Incessant BTC Selloffs from $3 Billion Ponzi Scheme

Bitcoin’s recent dip under the $10,000 mark is alleged to be directly related to the incessant bitcoin selloffs from a $3 billion Chinese Ponzi scheme, and the dump may continue.

The scam dubbed PlusToken went bust early in July after Chinese police arrested a core team member of the scheme who had escaped to Vanuatu at that time. Identified as the largest Ponzi scheme in the crypto space, PlusToken made off with over 200k BTC, 800k ETH, 26 million EOS, totaled around a whopping $3 billion.

14BWH6GmVoL5nTwbVxQJKJDtzv4y5EbTVm Total 95,288 BTC received
31odn4bxF2TgM4pD7m4hdSr1vGMsjh9ugV Total 68,562 BTC received
33FKcwFhFBKWHh46Ksmxs3QBu8HV7h8QdF Total 37,922 BTC received

(Three confirmed BTC wallet addresses of PlusToken and BTC amount in each)

However, the cryptocurrencies the gang scammed could not be rolled back and the people who hold the keys obviously have not been caught hence the police cannot unlock those wallets.

Those PlusToken wallets monitored by crypto security firm Peckshield have been detected moving the fraudulent funds into lots of different addresses including some crypto exchanges since early July. Over the past few days, 5,775 BTC was noted to be moved in small batches (50-200 BTC per batch) into many different addresses (easier to send to exchanges).

In the meanwhile, a chat screenshot recently circulating among Chinese traders claimed that the latest downturn in the crypto market seemed to be a result of mass selloffs from PlusToken who has been dumping the scammed 200k BTC, 100 BTC by 100 BTC incessantly for five days on crypto exchange Binance.


According to the chat, bitcoin slump began to ease somewhat yesterday afternoon, simply because the dump stopped for Binance’s system upgrade. And it explained the reason why they chose to dump on Binance was that frequent OTC (over the counter) trading on Huobi and OKEx (China-born crypto exchanges favored by most Chinese crypto traders) would trigger alarms which could lead to accounts being frozen.

In an effort to curb the impact of such selloffs on the crypto market, Dovey Wan, founding partner of crypto investment fund Primitive Ventures, asked security firms to keep a closer eye on whether the scam gang is moving more funds into exchanges, and called on exchanges and over-the-counter platforms to blacklist those wallet addresses.

Among its latest big money flow, Peckshield monitored on August 14 another PlusToken’s major wallet was on the move – around 23,000 BTC transferred into four new addresses, with the amounts being 4,922 BTC, 5,000 BTC, 6,000 BTC and 7,000 BTC in each. However, this part of funds has not been further transferred for the time being, and it is still uncertain whether it will flow into exchanges.


 Graph showing PlusToken’s addresses and money flow in early July made by PeckShield


 Graph showing one of PlusToken’s addresses starting with 1M1Tfsvb and money flow on August 12 made by PeckShield

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