PlusToken, which was a Chinese cryptocurrency Ponzi scheme which posed as a cryptocurrency wallet and is one of the largest scams in the cryptocurrency world, attempted to move 789,500 (ETH) through a trick, but the stroll of these stolen funds were temporarily held up by congestion issues within the Ethereum Network.
They tried to disguise the activity splitting $186 million transfer into different transactions which then came in the sight of Whale Alert, which is one of the largest and fastest growing crypto communities providing real time transaction data for traders.
PlusToken liquidates BTC and ETC
PlusToken has been working like a harmful insect in the crypto industry by liquidating holdings and holding large amount of Bitcoin (BTC) and other assets like Ether and EOS. It’s a threat to spot market that PlusToken holds a large amount of stolen crypto-assets. A piece of information was brought to light that the March 12 crash was caused by PlusToken dumping Bitcoin on spot markets, after a few while the information got receded.
Movements of BTC from PlusToken to exchanges slowed down severely prior to the Black Thursday crash but the incidents demonstrates that the two events were not related. Many still believe that PlusToken is accountable for some of the accentuated drops in the Bitcoin Price in December 2019.
It is said from the past record that large inflows to exchanges tend to increase the price volatility on exchanges. But prices usually bounce back in haste from those one-off events.
Increasing in Security
Liquidation issue faces a little bit obstacles because of exchange’s KYC tokens. KYC asks for identification from a person selling the assets. In Huobi and Okex exchanges, KYC and AML policies are not sufficient enough to stop the scammers that let PlusToken easily conduct BTC sell-offs. But Huobi launching an on-chain monitoring tool namely Star Atlas to identify money laundering and other fraudulence activities on their platform has bolstered its security standards. Paxful is also following that footstep to give its security factor a strong footing. But it is yet to see, what PlusToken is going to do next.