According to Alistair Milne CIO At Altana Digital Currency Fund, the arrested organizers have handed the private keys of the PlusToken project’s wallet to law enforcement officers.
– PlusToken holdings are being liquidated by the authorities (keys probably surrendered upon arrests)
– Coins are mixed to try to obfuscate in order to not be interpreted as a government 'endorsement' of Huobi
– They will sell more carefully now people are aware
— Alistair Milne (@alistairmilne) December 19, 2019
Therefore, the coins are conducted through mixing services, to ensure that the community does not perceive the sale on Huobi as government support.
At the same time, a well-known analyst, Willy Woo, did not agree with Milne. According to his tweet, if China participated in the sale, then Bitcoin would be completely crushed. But as the analyst notes, the first cryptocurrency was lowered to the too low level and the dump has been stopped.
Given they stopped dumping when price got too low, assumption is they care about the money. If I was China I would want to dump BTC to the ground.
— Willy Woo (@woonomic) December 20, 2019
His opinion is based on the fact that China opposes cryptocurrencies, while it supports blockchain technology. Besides, the country is working to create a digital Renminbi to become a monopoly in the digital ecosystem.
However, Alistair Milne objects to this, as China receives billions of US dollars due to mining operations.
“Bitcoin mining is actually helping $ billions flow * IN * to China … they don’t hate it at all, just want the flows to be the right direction,” he posts.
The discussion took place against the backdrop of the recent ETH movement from the PlusToken project.
About 800 ETH Have Been Transferred From PlusToken Wallet
However, according to WhaleAlert service, more than $ 100 million of the PlusToken cryptocurrency ponzi scheme has moved earlier this week.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 789,525 #ETH (105,099,509 USD) transferred from PlusToken to unknown wallet
— Whale Alert (@whale_alert) December 19, 2019
The research company Chainalysis associated the decline in the value of Bitcoin with the actions of PlusToken. Analysts believe that the organizers of the scam are putting pressure on the cryptocurrency market. According to the company, PlusToken founders own about 20 thousand BTC.
Primitive Crypto managing partner Dovey Wan demonstrated a similar opinion. She considers it suspicious that the beginning of the growth of the Bitcoin exchange rate coincided with the period of PlusToken’s active fundraising, and the asset value began to fall immediately after the arrest of the founders of the scam.
IMO PlusToken is the main force for both the bull and bear from April to YTD
What I can share publicly here
1. After CNY 2019 (Feb 5th) PlusToken on-ramp spike up significantly in Mar and Apr
2. Its team were arrested Vanuatu time on 6/25.. BTC crashed a day after https://t.co/WGvTLYmpgd
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) November 27, 2019
PlusToken was founded in 2018. The company positioned itself as an international decentralized project. PlusToken promoted its services mainly in Asian and European countries.
In the summer of 2019, the company’s owners disappeared with $ 3 billion worth of the clients’ assets. However, the project’s customers could not withdraw cryptocurrency from June 27, and the rate of the PLUS platform’s native token has not changed since June 29. In August, Chinese police arrested the alleged ponzi scheme organizers.
I mentioned it briefly in my last Coindesk oped but worth additional attention as it may cause further sells pic.twitter.com/uIjgrzwHET
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) August 14, 2019
Note, despite the actions of law enforcement agencies, PlusToken wallets remain active, and its servers continue to work. Matthew Graham, the head of the investment company named Sino Global Capital, has shared a video posted by PlusToken account holders on a Chinese social network. In the video, the curators talk about the ways of moving funds.
Plustoken scammers trying to explain away their token transactions, the brazenness is really incredible (Mandarin video) pic.twitter.com/upFE4MDnBr
— Matthew Graham (@mg0314a) December 19, 2019
Graham noted that the people who posted the video may be associated with the project team, but not be its members.
As the information about the transaction appeared, cryptocurrency market capitalization decreased by about 10%, however, at the moment, the cryptocurrency market keeps recovering.