Hundreds of Dormant Ethereum Wallets Reactivate and Move Over 780K ETH Coins, What is Happening?

Amid the current market downtrend, hundreds of Ethereum wallets that have been dormant for over 3 years have been reactivated, moving staggering amounts of ETH, to the tune of 780,000 coins. This development has caught the attention of market participants who wonder about the entities behind this movement.

The coins transferred have been linked to the infamous Plus Token Ponzi scheme that happened in 2020. At the time, Chinese authorities confiscated more than $4 billion in digital assets from the perpetrators. While some crypto market participants speculate that the Chinese authorities are behind the recent move, others guess that hackers might be tampering with the seized stash.

Plus Token Scam-Linked Wallets Shifts $2 Billion ETH

According to a report by Look on Chain, a prominent large crypto transaction tracker, these wallets have been inactive for 3.3 years. All of a sudden, they sprung back into action and moved exactly 789,533 ETH, valued at approximately $2 billion. Upon further check, Look on Chain discovered that the transfers originated from the Plus Token Ponzi 2 wallets associated with the Plus Token scam.

The last time that this wallet recorded any transaction was in 2020 after it moved the large sum of ETH to several wallets in 2020 and became dormant in April 2021. According to a report from the Coin Bureau, the Plus Token scam was dubbed the “biggest crypto fraud in history.”

Are the Chinese Authorities Involved?

In November 2020, the Chinese authorities seized digital assets worth more than $4 billion during the Plus Token Scam crackdown. Multiple crypto assets were seized from the convicts including 194,775 Bitcoin (BTC) worth $11.2 billion, and 833,083 Ethereum (ETH), valued at approximately $2.11 billion. Other notable cryptocurrencies confiscated by the authorities included;

• 79,581 Bitcoin Cash (25.8 million)
• 487 million XRP ($252 million)
• 74,167 DASH ($1.7 million)
• 27.6 million EOS ($12.7 million)
• 1.4 million Litecoin ($82.3 million)
• 6 billion Dogecoin ($609 million)
• 213,724 USDT

The Coin Bureau noted that the Plus Token tricked investors, promising them a 30% return on their investments targeting mainly investors in China and South Korea. Since there has been no further confirmation on the recent ETH transfers, it has been speculated that the Chinese authorities are behind it and that other coin dumps might follow in the coming days.

Ethereum Price Movement Amid Transfer Saga

Meanwhile, the price of ETH has lost significantly in the last 24 hours. The second-largest cryptocurrency has fallen below the crucial $2,500 mark, signaling even more bearish movements. According to data from CoinMarketCap, ETH declined by 6.00% to trade at $2,381 at press time.

Moreover, its one-day trading volume plummeted by 18% to $23.4 billion, signifying reducing market activities. Over the last day, there have been other notable whales bagging sizeable amounts of ETH coins in anticipation of an imminent rally. Will the price of ETH bounce back amid these large movements? Only time will tell as investors continue to monitor the market as it unfolds.

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