Earlier this week, PlusToken, one of the biggest scams in the world of cryptocurrency, tried to move 789,500 ethers (ETH), but the movement of this stolen money was temporarily delayed due to congestion issues within the Ethereum network.
The $ 186 million transfer came from a known Ethereum address and was then broken down into 50 different transactions, possibly to disguise the activity. Whale Alert was the first to recognize these transactions, which have been processed since then. Very little information is known about the destination of the funds.
Just two days before this last event, PlusToken also stole $ 67 million in EOS.
The massive turnover of PlusToken led to corrections at ETH and BTC
Despite mining last year, PlusToken continues to devastate the cryptocurrency industry by liquidating its funds and holding large amounts of Bitcoin (BTC) and other assets such as ether and EOS.
PlusToken still has a significant amount of stolen crypto assets, and these funds continue to pose a threat to the spot markets. because big sales in the market can affect the price of Bitcoin and Ether on different exchanges.
While some still believe the March 12 collapse is due to PlusToken’s actions that have placed too many Bitcoin in the spot markets.This theory was quickly discarded by data from blockchain analysis company Chainalysis.
According to the data from Chainalysis, PlusToken’s BTC exchange move slowed long before Black Thursday collapsed, showing that the two events had nothing to do with each other.
While this particular breakdown had nothing to do with PlusToken, Many still believe that the group is responsible for some of the biggest price drops on Bitcoin, for example in December 2019
As cryptocurrency options and futures are becoming more popular, The risk of a further sharp decline due to a sell-off increases as this could put great pressure on ether.
The research leader for chain analysis, Kim Grauer agrees that a massive sale triggered by PlusToken is a real risk. How, Grayer, previously said Cointelegraph:
“In the past, we have noticed that large market entries like PlusToken’s have tended to increase price volatility on the stock exchanges last year. This problem can be exacerbated by trading bots that are aware of such movements in the US Chain-and-execute exchanges, not to mention highly indebted positions on derivatives exchanges, which tend to settle very quickly. Overall, however, prices are quickly recovering from these unique events. “
Exchanges increase security to keep fraudsters away
In this case, the Ethereum network acted as a temporary bottleneck for fraudsters. Ironically, since the transaction was stopped due to network congestion, this is a silver lining in the current scalability issues that the second largest blockchain network is going through.
However, The biggest convincing element for the liquidation of PlusToken funds should be the “Know Your Customer” or KYC (Know Your Client) standards of the exchanges.
KYC requires users to prove their identity, which, if properly implemented, can result in the arrest of the person or people selling the assets. As previously reported Much of PlusToken’s BTC sales took place on the Huobi and Okex exchanges, where the KYC and AML guidelines were insufficient to stop fraudsters.
To be honest, Huobi has been working hard to improve its security standards since the recent PlusToken wave of BTC sales. The exchange recently launched a chain monitoring tool called Star Atlas to identify “crimes such as fraud, money laundering and other problematic activities” on its platform.
The exchange between couples, Paxful recently partnered with Chainalysis to improve control over illegal transactions.
While it is difficult to know what the next step for PlusToken scammers will be, traders will be watching the upcoming Ether options expiration and spot price on the exchanges to see if fraudsters are trying to sink open markets after that Procedure.