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Bitcoin’s Latest Sharp Drop Is Not PlusToken-Related, Security Firms Say

Bitcoin’s latest price drop was not caused by bitcoin sell-offs from the $3 billion Chinese crypto Ponzi scheme PlusToken, according to analysis from several security firms.

As bitcoin plunged to two-month lows over the weekend, concerns are rising that the sudden crash is likely triggered by the sell-offs from PlusToken scammers who were found to have moved over 13,000 BTC days ahead of bitcoin’s sudden crash on March 5.

While there’s no indication that bitcoin’s sudden crash is associated with PlusToken, according to China-based blockchain security firms Chainsguard and PeckShield which have been tracking the fraudulent fund of the scam.

“The moved bitcoins is still in the mixing process at present, and has not yet flowed into the market,” says Chainsguard, “on the contrary, the pace of mixing has slowed as a result of the recent plunge.”

Plustoken, the notorious Ponzi scheme, is believed to have amassed as much as $3 billion in cryptocurrency, largely from Chinese investors who were duped into believing that the scheme would provide them with high returns.

The scam went bust in July 2019 after Chinese police arrested six core team members 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.

In fact, the PlusToken scammers at large have been liquidating their stolen bitcoin since August of 2019. Considering the large quantity of bitcoins involved in the scam, whenever the cryptocurrency market goes downwards, investors will associate it with the PlusToken dump.

As early as August 2019, Chinese crypto traders have already speculated that the scammers trying to sell the ill-gotten bitcoin had caused bitcoin price’s over $1,000 drop merely in days.

Ethereum has also taken a hit as PlusToken scammers dump their ETH holdings. On December 19, Whale Alert data showed that over 789k ETH (approximately $105 million worth at that time) involved with the PlusToken address had been moved. Coincidentally, the price of ETH fell 3.7% in minutes on that day, wiping $550 million off its market value.

Though there is no direct evidence indicating the correlation between PlusToken moves and the drop of bitcoin price, any PlusToken activity deserves the attention and it will continue to make waves in the crypto market considering the huge cryptos the gang has massed.

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