Is PlusToken Scam About to Dump ETH? $105M Moves to Unknown Wallet

Ether price faced fresh selling pressure on Dec. 19 as a giant transaction associated with the PlusToken ponzi scheme worried traders.

Data from Twitter-based monitoring resource Whale Alert, a single movement of 789,525 ETH between a known PlusToken wallet and an unknown recipient occurred early Thursday.

Giant transaction turns traders bearish on ETH. PlusToken, which hit a high of near $350 before crashing, has earned the infamous title of being one of the world's biggest ponzi schemes.

While still operational, its Chinese operators received an estimated $3 billion in Bitcoin and ETH from unwitting investors purchasing PlusToken coins.

Noting the ETH move, trader and analyst Alex Krueger warned the consequences for the Ether price could be severe.

As Cointelegraph previously noted, suspicions had already surfaced about PlusToken's impact on Bitcoin.

In a report last month, research firm Chainalysis suggested scammers may be using over-the-counter off-ramps to sell BTC en masse, driving down the price.

"Unfortunately, because it's not possible to distinguish between trades made by OTC brokers in possession of PlusToken funds and all other trades made on Huobi, we can't say for sure that PlusToken cashouts caused Bitcoin's price to drop," the report stated.

"However, we can say that those cashouts cause increased volatility in Bitcoin's price, and that they correlate significantly with Bitcoin price drops."

While both BTC/USD and ETH/USD have fallen significantly in recent weeks, Ether faces added difficulties as slow progress and controversial decisions by Ethereum developers take their toll on sentiment.