Key Highlights
Numerous dormant wallets that have remained inactive for over three years are now relocating substantial amounts of Ethereum.
Wallets associated with the PlusToken scam have transferred 789,533 ETH, valued at nearly $2 billion.
Recent Developments in Ethereum Transfers
According to the latest insights from Lookonchain, hundreds of Ethereum wallets that have been idle for more than three years have recently initiated significant transfers of ETH. A post on X by Lookonchain reveals that these wallets have moved a staggering 789,533 ETH, equivalent to approximately $2 billion at current market rates.
The platform also highlighted that these inactive addresses are linked to the PlusToken Ponzi scheme wallet, based on blockchain tracing. Lookonchain noted that PlusToken Ponzi 2 had distributed 789,533 ETH across thousands of wallets back in 2020, with no activity from these addresses since April 2021. However, just hours ago, these wallets began transferring Ethereum, as per data from Etherscan.io.
Background on the PlusToken Ponzi Scheme
Lookonchain further indicated that the Ethereum assets were confiscated by Chinese authorities during a crackdown on the PlusToken Ponzi scheme. In November 2020, various cryptocurrencies were seized from seven convicted individuals, as detailed in court documents referenced by Lookonchain:
- 194,775 BTC (approximately $11.2 billion)
- 833,083 ETH (approximately $2.11 billion)
- 487 million XRP (approximately $252 million)
- 79,581 BCH (approximately $25.8 million)
- 1.4 million LTC (approximately $82.3 million)
- 27.6 million EOS (approximately $12.7 million)
- 74,167 DASH (approximately $1.7 million)
- 6 billion DOGE (approximately $609 million)
- 213,724 USDT
The court stated in 2020 that the confiscated cryptocurrencies would be processed according to legal frameworks and subsequently “forfeited to the national treasury.” The motives behind the recent transfers of these funds remain unclear, and it is uncertain whether the assets are still under the control of Chinese authorities.
The PlusToken Scam
Coin Bureau has characterized the PlusToken scam as the largest cryptocurrency fraud in history. In a dedicated analysis of the Ponzi scheme, Coin Bureau highlighted that the targets were primarily investors from China and South Korea, although victims were also found across East Asia, Germany, and Canada.
Investors were lured with promises of returns ranging from 9% to 18% for purchasing PLUS tokens using BTC and ETH. They were reportedly assured that these PLUS tokens would appreciate to $350, claiming the scheme would generate profits through cryptocurrency mining operations, affiliate programs, and exchange profits.
Additionally, the PlusToken wallet was marketed as a potential game changer in the industry, according to Coin Bureau. Local media reported that the individuals behind the Ponzi scheme defrauded over 2 million people out of more than 50 billion yuan, roughly equating to $7.6 billion.
The PlusToken operation officially commenced in May 2018, promoting a non-existent cryptocurrency trading arbitrage platform. From April 6, 2018, to June 27, 2019, the pyramid scheme attracted over 2.6 million members, as stated in official court documents.
Official reports confirm that 15 individuals were convicted in connection with this case, receiving prison sentences ranging from 2 to 11 years, along with fines between $100,000 and $1 million.
