Earlier this week, PlusToken, one of the largest scams in the world of cryptology, attempted to move 789,500 Ether (ETH), but the movement of these stolen funds was temporarily delayed due to congestion problems within the Ethereum network.
The transfer of $186 million came from a known Ethereum address and was then split into 50 different transactions, possibly in an attempt to disguise the activity. Whale Alert was the first to detect these transactions, which have since been processed, but very little information is known about the destination of the funds.
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Just two days before this latest event, PlusToken had also moved $67 million stolen from EOS.
PlusToken’s massive sales led to corrections at ETH and BTC
Despite being dismantled last year, PlusToken continues to wreak havoc on the crypto industry by liquidating its funds and holding large amounts of Bitcoin (BTC) and other assets such as Ether and EOS.
PlusToken still has a considerable amount of stolen crypto assets, and these funds continue to pose a threat to the spot markets, as large market sales can affect the price of Bitcoin and Ether on various exchanges.
While some still believe that the March 12 collapse was due to the actions of PlusToken, which placed too many Bitcoins in the spot markets, this theory was quickly dismissed by data from the blockchain analysis company, Chainalysis.
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According to data from, Chainalysis, PlusToken’s BTC movements to the exchanges slowed down long before the Black Thursday collapse, showing that the two events were unrelated.
While this particular collapse was unrelated to PlusToken, many still believe that the group is responsible for some of the sharpest declines in Bitcoin price, namely in December 2019
Price analysis as of 26/06: BTC, ETH, XRP, BCH, BSV, LTC, BNB, EOS, ADA, CRO
As options and futures on crypto currencies continue to grow in popularity, the risk of a further sharp drop caused by a massive sell-off increases, as it could trigger great pressure on Ether.
Chainalysis‘ head of research, Kim Grauer, agrees that a mass sale triggered by PlusToken is a real risk. As Grauer previously told Cointelegraph:
„We’ve found in the past that large exchange entries, such as those by PlusToken last year, tend to increase price volatility on the exchanges, this problem can be exacerbated by trading bots that notice these chain movements and execute the exchanges, not to mention the highly leveraged positions on the derivatives exchanges tend to liquidate very quickly. But in general, prices tend to recover quickly from these unique events.
Exchanges increase their security to keep fraudsters away
In this case, the Ethereum network acted as a temporary bottleneck for the fraudsters, as the transaction was stopped due to network congestion, something that ironically is a positive side to the current scalability problems that the second largest blockchain network is going through.
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However, the biggest persuasive element for the settlement of PlusToken funds should be the „know your customer“ or KYC standards of the exchanges.
KYC requires users to prove their identity which, if implemented correctly, could lead to the arrest of the person or persons selling the assets. As previously reported, a large portion of PlusToken’s BTC sales took place at Huobi and Okex exchanges, where KYC and AML policies were insufficient to stop the fraudsters.
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To be honest, Huobi has worked hard to improve its security standards since the last wave of BTC sales by PlusToken. The exchange recently launched a chain monitoring tool called Star Atlas to identify