BTC Price Falling Today Could Be A Result Of One Chinese Ponzi Scheme

The BTC price falling today is something that no one expected after yesterday’s fall. However, the cryptonews now show that the most dominant cryptocurrency is taking the lead as many other altcoins are dropping and losing their value. What’s interesting is that all of this may come as a result of one Chinese Ponzi Scheme which is dumping its crypto on the market.

According to the blockchain firm Chainalysis, the BTC price falling is held down by scammers who are seeking to liquidate more than $2 billion worth of cryptocurrency which belongs to one of the largest ever Ponzi schemes, PlusToken.

The analysis shows that the firm tracked around 45,000 BTC ($302 million) and 800,000 ETH ($102 million) sent from PlusToken’s operational wallets to individual addresses owned by the scammers themselves.

The firm (ominously) noted that 20,000 BTC (worth around $134 million) is still waiting to be dumped. As they said, this may be the reason for the BTC price falling to $6,700 this morning:

“Given this analysis and the effects we’ve observed so far, liquidations of large amounts of illicitly obtained funds are likely to drive down the price of cryptocurrencies.”

Just like many other Bitcoin fueled Ponzis, the PlusToken scam swindled a lot of investors out of their cryptocurrency by promising them high returns. All that buyers had to do was acquire the PLUS cryptocurrency with Bitcoin (BTC) and Ether (ETH). Then, they would purportedly generate lucrative profits from exchange dividends, mining income and referral bonuses automatically.

Chainalysis also noted that several Chinese exchanges listed PLUS and its price hit a peak of $350 as it gathered investments from millions of people. Readers familiar with Ponzi as the BitConnect con are likely feeling a strong sense of deja vu with this case.

“While we tracked $2 billion worth of various cryptocurrencies that victims sent to the PlusToken scammers, some of that money was paid out to early investors, presumably to maintain the illusion of high returns while PlusToken presented itself as a legitimate company. Nonetheless, we’ve tracked roughly 800,000 ETH [$102 million] and 45,000 BTC [$302 million] we can definitively say the scammers transferred to their own addresses to launder,” said the firm.

As some rumors in the altcoin news show, in total, the PlusToken Ponzi is believed to have amassed 180,000 BTC, 6,400,000 ETH, 110,000 USDT, and 53 OmiseGO (OMG) from its victims – all equating to roughly $2 billion,