The organizers of the largest crypto-financial pyramid in China, PlusToken, may be responsible for the mass elimination of Bitcoins in the market.
PlusToken was launched in 2018 and positioned as a decentralized international wallet project supported by a team from South Korea. The project was promoted mainly in Asian and European countries, including Russia, and offered users the opportunity to earn large returns on invested funds.
Investors were attracted by payments from 6% to 19% per month and additional bonuses for new participants. The scheme used a four-tier payout structure and announced in early 2019 that it had more than 10 million members.
At the end of June, PlusToken users began to experience difficulties when trying to withdraw the cryptocurrency from the service. At the same time, trading with the PLUS platform's own token was suspended. According to the initial data of the police, losses from PlusToken actions were estimated at $3 billion.
As the partner of the Primitive Fund Davy Van reports in his Twitter, the key figures of PlusToken were discovered by the police 2 months ago. They face up to several decades in prison.
According to Wang, many Bitcoin addresses of PlusToken are multisigned addresses. The individuals who control the keys to these addresses are still likely to be at large. This makes it difficult to confiscate assets, and so far not only the bitcoins have not been seized, but also the funds in the EOS and Ethereum networks.
Peckshield, a security audit company, has sketched the movement of PlusToken assets as of early July. According to her data, about 1,000 BTCs were transferred to the Bittrex and Huobi exchanges. It is expected that from this very moment the liquidation of the cryptocurrency began.
According to Van, the withdrawal of assets from PlusToken wallets continues to this day. Yes, they move these funds in small batches to stock exchanges, 50-100 BTC at a time," Van writes. - Chinese traders say that someone is selling 100 BTC on Binance nonstop.
One of the users shared a supposed list of PlusToken bitcoin addresses containing about 200,000 BTCs. He also draws attention to the fact that one of these addresses was recorded on August 13, outgoing transfer to the amount of about 23,000 BTC.
We will continue to monitor the situation around PlusToken