Unveiling the Plus Token Ether Movement
In recent developments, approximately $16 million in Ether tied to the infamous Plus Token scam has started flowing into various exchanges, signaling potential sales intentions. This information comes from on-chain analyst ErgoBTC, who has been monitoring the movements of funds linked to this fraudulent scheme.
Background of the Plus Token Scam
The Plus Token Ponzi scheme, which duped investors between 2018 and 2019, resulted in Chinese authorities seizing about $4.2 billion in cryptocurrencies, including a significant amount of Ether. Originally, around 833,083 ETH were confiscated, and as per reports, a portion was sold at the now-defunct Bidesk exchange in 2021. However, the remaining 542,000 Ether, spread across numerous wallets, started moving again in August, consolidating into 294 addresses.
Recent Developments in Ether Movements
In the past week, 15,700 Ether began moving, with roughly 7,000 ETH, valued at $16 million, making its way to exchanges. ErgoBTC noted that the recent efforts to obscure these Ether transactions suggest ongoing distributions of the seized assets. This movement has reignited discussions about the potential volume of Plus Token’s ETH still available for sale.
Blockchain tracking firm Lookonchain previously claimed that 789,533 dormant Ether from the Plus Token scheme had been activated. This claim was later retracted after on-chain analyst EmberCN highlighted that 268,843 ETH had already been sold at Bidesk in 2021. Furthermore, Arkham Intelligence estimated that 196,000 dormant Ether related to Plus Token had moved within a 12-hour window.
While the current $16 million Ether movement is not a significant market disruptor, the potential sale of 540,000 Ether, valued at approximately $1.3 billion, could exert substantial pressure on the market.
The Downfall of the ‘Crypto King’
In another significant event, Filipino authorities arrested a self-proclaimed “Crypto King” on October 7. This individual, a 23-year-old known as Joshua, is accused of defrauding investors out of roughly 600 million Philippine pesos, equivalent to $10.5 million.
Details of the Arrest
During a police press conference, Joshua was accused of targeting high-profile individuals, including media figures and government employees. Authorities revealed that he maintained a database of potential victims, indicating a premeditated approach.
Previously arrested under the name Vance Joshua Tamayo, the suspect had promised investors monthly returns of 4.5% through what was presented as a legitimate business. Initially, he honored these returns but eventually cut off communication, leading to significant financial losses for investors. Despite being granted bail for a previous scam, the volume of his fraudulent activities increased, prompting additional complaints.
Authorities are now preparing to file a “large-scale estafa” case against him, which would remove the possibility of bail.
Upbit’s Monopoly Raises Concerns
In South Korea, Upbit’s dominance in the crypto market has sparked fears of a potential bank run at K-Bank, its primary banking partner. South Korean regulations require crypto exchanges to partner with local banks for fiat transactions, and the Upbit-K-Bank partnership controls 70% of the market.
Potential Risks of Market Concentration
During a National Assembly audit, concerns were raised about the concentration of funds at K-Bank, which holds around 4 trillion won ($3 billion) in Upbit customer deposits. Lawmaker Lee Kang-il warned of a potential bank run if Upbit’s services were disrupted.
Lee criticized the Financial Services Commission (FSC) for allowing such risks to develop by favoring certain companies. In response, the FSC Chairman acknowledged the concerns and mentioned ongoing efforts to enhance regulations for anti-money laundering and investor protection.
A bank run at K-Bank could have global repercussions, as the South Korean won is a major fiat currency in crypto trading. K-Bank is also preparing for a $730 billion IPO, with an expected valuation of $4 billion by the end of October.
Expansion of Licensed Crypto Exchanges in Hong Kong
Hong Kong is set to see a rise in licensed crypto exchanges by year-end, according to Julia Leung, CEO of the city’s Securities and Futures Commission (SFC). The SFC has begun on-site inspections of applicants, with approvals expected in batches.
Current Licensing Status
As of now, only
