The Chinese crackdown on Ethereum has resurfaced, with around 7,000 ETH seized by Chinese police from crypto Ponzi scheme PlusToken moving to exchanges earlier this week.
China Risk Continues in Ethereum!
Different types of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), XRP and Litecoin (LTC), with a total value exceeding $14 billion, were seized from PlusToken, which defrauded more than 2.6 million people in 2018 and 2019.
While these ETHs are moving again, experts are evaluating whether China will sell Ethereum or sell all or part of it.
At this point, the OXT Research analyst added that approximately 7,000 ethers (worth $ 16.7 million) from the multi-billion dollar PlusToken crypto Ponzi scheme were transferred to exchanges including Binance and OKX, and that he expects all of the $ 1.29 billion worth of ETH seized from the PlusToken Ponzi scheme to be sold.
“In early August, Ethereum seized from the multi-billion dollar PlusToken scheme moved on-chain for the first time since 2021.
In the last 24 hours, approximately 7,000 ETH (worth $16.7 million) of the remaining 542,000 ETH (worth $1.3 billion) were sent to exchanges.
This suggests that China intends to begin selling the remaining ETH, with the possibility of selling all $1.3 billion worth of ETH in the future.
These Ethereum sales could also cause an unexpected ETH oversupply in the market.”
Stating that China's Ethereum sale could cause ETH supply pressure, the analyst added that it could also create downward pressure on the price.
*This is not investment advice.