Ethereum worth $1.3 billion from PlusToken Ponzi set for sale

Up to $1.3 billion in Ethereum (CRYPTO:ETH) seized from the PlusToken Ponzi scheme could soon be sold, potentially increasing selling pressure on the market, according to on-chain data from OXT Research.

Analyst Free Samourai revealed that some of the seized ETH has already been sent to cryptocurrency exchanges, including BitGet, Binance, and OKX, indicating an intent to sell.

The current price of ethereum, as of this writing, is around $2,448, down 1.5% for the day, although it has remained relatively stable over the past week, based on data from CoinGecko.

This massive liquidation of Ethereum originates from the dismantled PlusToken Ponzi scheme, which operated in China between 2018 and 2019 and attracted over 2.6 million participants.

According to blockchain analytics firm AMLBot, approximately 542,000 ETH, part of the seized assets, was distributed across several wallets.

Around 7,000 ETH (valued at $17.2 million) has already reached exchanges, indicating the likely start of a broader sell-off.

Free Samourai noted that an additional 15,700 ETH has also been transferred from PlusToken’s addresses, suggesting further sales are imminent.

The PlusToken Ponzi scheme led to Chinese authorities seizing substantial amounts of various cryptocurrencies, including 194,774 Bitcoin (1% of Bitcoin’s total supply), 830,000 ETH, and large quantities of other tokens such as Litecoin (CRYPTO:LTC), XRP (CRYPTO:XRP), and Dogecoin (CRYPTO:DOGE).

These assets were transferred to Zhifan Technology Beijing for liquidation, with the intention of distributing funds to the victims of the scheme.

Analysts warn that this sale could create significant sell pressure on Ethereum.

According to Calvin Ferreira, head of ecosystem and growth at BitcoinOS, "Any significant liquidation could dramatically increase selling pressure, leading to a further drop in Ethereum’s price."

The timing and volume of the sales will likely determine the extent of the market impact.

Anmol Jain, head of investigations at AMLBot, emphasised that market sentiment and liquidity could be affected by these developments.

At the time of writing, the Ethereum price was $2,460.58.