Plus Token Scam ETH Movement Claims Debunked
In A Nutshell
Recent claims by Lookonchain about the movement of nearly $2 billion in Ether (ETH) linked to the Plus Token scam have been called into question. Independent analysis suggests that the majority of these funds were already sold in 2021, contradicting the initial alarm that led to Lookonchain deleting its original social media post. This situation underscores the volatile nature of crypto market information and the importance of rigorous verification.
Dissecting the Misinformation
Lookonchain, a blockchain analytics service, stirred the crypto community with an assertion that wallets associated with the Plus Token scam had started to move some 789,533 ETH, valued at around $1.8 billion. This news, shared on the platform formerly known as Twitter, was later debunked by EmberCN, a Chinese crypto data account. EmberCN’s investigation revealed that most of this ETH had actually been moved to Bidesk, a crypto exchange in the British Virgin Islands, between June and September 2021, leaving only an estimated 25,757 ETH—worth approximately $63.1 million—recently transferred.
Clarifying the Confusion
Following the initial report by Lookonchain and its subsequent deletion, other entities like Arkham Intelligence weighed in, albeit with conflicting information regarding the ETH movements related to Plus Token. Despite claims of $450 million worth of ETH being moved, closer examination by Arkham and other analysts found minimal new activity, highlighting the challenge of tracking and interpreting blockchain data accurately.
The Legacy of Plus Token
Plus Token, identified as one of the largest crypto Ponzi schemes, operated a cryptocurrency wallet app in China from 2018 to 2019. The scheme reportedly defrauded investors of up to $2.9 billion. Chinese authorities arrested six individuals linked to Plus Token in July 2019, extraditing them to China for prosecution. The case against Plus Token and its operators continues to be a cautionary tale in the crypto space, illustrating the risks associated with digital asset investments.
Our Take
The recent confusion over the alleged movement of Plus Token-linked ETH underscores a critical challenge in the cryptocurrency sector: the need for accurate, verified information. While blockchain technology promises transparency, the interpretation of data requires expertise and caution. This incident serves as a reminder to investors and analysts alike to scrutinize claims, especially those that can significantly impact market perceptions and prices. As the crypto industry continues to evolve, the community must prioritize data integrity and clarity to foster a stable and trustworthy market environment.
