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.
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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
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.