PlusToken is back to worry the market. However, it is worth noting that many of the funds scammed by this Ponzi scheme have been getting sold over the years.
It has been more than 100 days, over three months, since these funds have been moved.
“This is bullish either way,” commented Su Zhu, the CEO of Three Arrows Capital.
Today, the reports came that as per the new court ruling, crypto assets worth over $4.2 billion have been seized by the Chinese police in a PlusToken Ponzi scam crackdown. The ruling came amidst the latest reports of China cracking down on online criminal activities.
So TLDR; on the “China seized $4.2 billion in cryptos” news.
These were most likely already “processed” (read dumped) and this now was just a summary of that.
— WhalePanda (@WhalePanda) November 27, 2020
The crypto assets involved in this scam were 194,775 BTC, 833,083 ETH, 487 million XRP, 1.4 million LTC, 27.6 million EOS, 74,167 DASH, 6 billion DOGE, 79,581 BCH, and 213,724 USDT that are seized by the law enforcement from seven convicts, according to the judgment made public on Thursday.
Unfortunately, these assets won’t be returned to the victims.
“The seized digital currencies will be processed pursuant to laws, and the proceeds and gains will be forfeited to the national treasury,” said the court, but nothing is mentioned about the when, what, and how of it.
The market expects these crypto assets to be released in the market in a “gradual manner.”
The PlusToken Ponzi scheme started its operations in May 2018; it duped more than 2.6 million members.
15 people have been convicted in the case so far who are in jail for two to 11 years with fines between $100k to $1 million. One convict also successfully laundered 145 million yuan worth of crypto into the Chinese Yuan.